I NTERNATIONAL T RADE

E NTREPRENEUR People take a risk when they start their own business- they have no guarantee that they will succeed.

P ROFIT The difference between the revenue a business receives and it’s cost of production

T RADE the exchange of goods or services for other goods and services or money.

E XPORT Goods sold in one country but produced in another country

I MPORT Goods and services bought from sellers in another nation.

T RADE BARRIERS something that prohibits trade Restrictions on trade such as tariffs, quotas and regulations

T ARIFF a tax imposed on imported goods.

Q UOTA an allotment or a production assignment (the amount ) of a good In international trade, the limit on the quantity of a product that may be imported or exported, established by government laws or regulations

R EGULATION Economic regulation is the prescription of price and output (amount produced) for a specific industry, often a natural monopoly.

E CONOMIC S ANCTION The withholding, usually by several nations, of loans or trade relations with a nation violating international law, to force it to comply.

E MBARGO government restriction placed on trade

E XCHANGE RATE the price of one currency in relation to another currency

WAR War plays an important roll in international trade. Blockades of ports and attacks on merchant ships inhibit trade.

WEATHER Changes in weather conditions such as hurricanes, tropical storms, blizzards and other conditions can disrupt the distribution of goods and services.

BOYCOTT Consumers refuse to buy certain products because they are protesting against some issue