The Global Economy

Trade surplus

When a country exports more than it imports

trade deficit

When a country imports more than it exports

Comparative advantage

ability of a country to produce a particular good more efficiently than another country.

Tariff

tax put on imports to build their cost in the homegrown market.

Quota

limit set on the amounts of an item that can be imported.

Embargo

prohibition on the import or fare of an item.

Countries have to pay for products and services with currency.

Countries must change their currency if they want to exchange worldwide with other countries in bussneuis.

Financial or international strategy regularly figures out which nations exchange with one another.

free trade happens when there are not many or no restrictions on exchange between nations.