INTERNATIONAL%20TRADE

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INTERNATIONAL TRADE

• NOTES

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Key Terms

• 1. national debt total amount of debt a country
  is in
• 2. comparative advantage given the resources
  available, one country has a trade advantage over
  another
• 3. tariffs a tax on imports
• 4. imports products from other countries
• 5. exports products sent from your country
• 6. protective tariffs tariffs designed to raise
  prices of foreign products to make American
  products more competitive
• 7. embargo refuse to trade with another country
• 8. favorable balance of trade country exports
  more than they import
• 9. trade deficit when a country imports more
  than they export

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I. NAFTA North America Free Trade Agreement

• A. started under Bill Clinton
• B. promotes free trade between Canada, US and
  MexicoNO TARIFFS!

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II. WTO World Trade Organization

• A. oversees trade among nations
• B. regulates/ enforces trading regulations
• C. helps develop weaker economies

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III. EU European Union

• A. 15 European countries combined to form one
  economic organization
• B. Use one currency the euro
• C. No trade barriers between these nations
• D. Attempt is to rival the economy of the US
• currently the Euro is stronger than the US
  dollar

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IV. Exchange rate value of one countrys money
v. another countrys

• A. Weak dollar export more and import less
  because your products are cheaper
• B. Strong dollar export less and import more
  b/c other countrys products are cheaper

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V. Developed, developing, underdeveloped countries

• A. developed strong economically,
  technologically, and in education
• B. developing working to get strong
• C. underdeveloped poor countries little
  resources and technology no education