the phenomenon of extremely high levels of international trade.

industries that produce goods and services that are sold abroad.

the difference in the ratio of factors used to produce a good in various industries. For example, oil refining is capital-intensive compared to auto seat production because oil refiners use a higher ratio of capital to labor than do producers of auto seats.

goods and services purchased from other countries.

an international organization of member countries that oversees international trade agreements and rules on disputes between countries over those agreements.

a demand curve that shows how the quantity of a good demanded by domestic consumers depends on the price of that good.

the practice in which businesses hire people in another country to perform various tasks.

policies that limit imports.

goods and services sold to other countries.

a model that analyzes international trade under the assumption that opportunity costs are constant.

trade that is unregulated by government tariffs or other artificial barriers; the levels of exports and imports occur naturally, as a result of supply and demand.

an alternative term for trade protection; policies that limit imports.

a legal limit on the quantity of a good that can be imported.

the price at which a good can be bought or sold abroad.

industries that produce goods and services that are also imported.

a tax levied on imports.

the phenomenon of growing economic linkages among countries.

a situation in which a country does not trade with other countries.

a customs union among 28 European nations.

a supply curve that shows how the quantity of a good supplied by domestic producers depends on the price of that good.

treaties by which countries agree to lower trade protections against one another.

a trade agreement among the United States, Canada, and Mexico.