1. international trade
    business transactions that involve products or services crossing international borders, i.e. the maker or supplier is in one country, the purchaser is in another
  2. open economy
    a country that is willing to buy from, and sell to, sellers and buyers in other countries. An economy that is open to the idea of international trade
  3. closed economy
    a country that refuses to trade with the rest of the world, and attempts to be self-sufficient
  4. exports
    products that Canadian businesses make and sell to other countries
  5. imports
    products that Canadian consumers buy from businesses in other countries
  6. absolute advantage
    the ability of a country to produce a good or a service more cheaply, more abundantly or to a better standard than other countries do
  7. comparative advantage
    the choice to concentrate resources and production on industries where a country is most internationally competitive, and not compete with products that it are made only moderately well
  8. opportunity cost
    the value of what will have to be given up in order to get something else
  9. primary industry
    an industry that harvests or extracts natural resources
  10. secondary industry
    an industry that takes raw materials and then refines, manufactures or constructs them into finished goods
  11. free trade
    international trade that involves minimum government interference into the flow of goods and services across borders
  12. North American Free Trade Agreement (NAFTA)
    a treaty between Canada, the USA and Mexico designed to increase the ease and speed, and lower the cost with which countries in North America trade with each other
  13. trade protection or protectionism
    a deliberate policy of making it more difficult or expensive to import products, or by aiding Canadian businesses in competing with imports
  14. infant industry
    an industry in its early stages of development, which is incapable of competing with established industries in other countries
  15. tariff
    a fee or a tax that is put on every imported good that enters a country
  16. quota
    a limit or fixed number of products that can be imported into a country
  17. subsidy
    financial and other material assistance provided to support a business, an industry, or an enterprise
  18. embargo
    a complete ban on the import of an particular product, or on any product form a particular country
  19. balance of trade
    the positive or negative difference between exports and imports
  20. trade surplus
    the value of a country's exports exceed its imports
  21. trade deficit
    the value of a country's imports exceed its exports
  22. foreign direct investment (FDI)
    a business in one country invests in a business in another country
  23. multinational corporation
    a business that has facilities and offices in at least one country other than its home country
  24. country risk
    the element of uncertainty introduced if a business invests in a country that is politically or economically unstable
  25. globalisation
    the process by which the experience of everyday life is becoming more similar for people all around the world
  26. offshoring
    the process of moving some part of a business' operations to another country
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