2		A _____exchange rate policy is one that relies on the unregulated forces of demand and supply to determine the exchange rate. (8)
4		A nation's balance of trade may initially worsen before it improves in response to a currency depreciation. This situation is called the ______effect. (1,5)
8		______ barriers refer to the various hidden ways that nations restrict imports. (9)
10		Trade in goods is shown in the ______account section of the balance of payments. (11)
13		The establishment of a free trade zone between two or more nations is referred to as economic ______. (11)
16		The free trade agreement that was signed by Canada, U.S. and Mexico in 1994 was called ______in its abbreviated form. (5)
17		A currency is said to ______when its value rises relative to another currency. (10)
21		From Canada's viewpoint, a trade transaction that increases the demand for the Canadian dollar is called a(n) ______. (6)
23		The ratio of the average price of a nation's exports to the average price of a nation's imports is called the _____. (5,2,5)
24		The currency that has been created to encourage trade between European nations. (10)
25		The practice of selling a good abroad at a price below its cost is called ______. (7)
28		Reserve assets created by the IMF that nations can use to settle international payments are called ______rights. (7,7)
32		A market-determined exchange rate is called a ______exchange rate. (8)
33		From Canada's viewpoint, a trade transaction that increases the supply of the Canadian dollar is called a(n) ______. (6)
34		The ability to produce more output from given inputs, when compared to other nations. (8,9)
35		The ______measures the difference between the total value of exported goods and services and the total value of imported goods and services. (7,2,5)

1		U.S. lumber producers claim that the _____fees that Canadian lumber firms pay when trees are cut down in Canada are below market rates. (8)
3		______monetary policy will tend to decrease the Canadian exchange rate. (12)
5		The European _____is the name for the trading bloc of European nations. (5)
6		A ______tariff is designed to shield domestic producers from foreign competition. (10)
7		The ______ parity theory states that over the long run, the exchange rate between two currencies adjusts to reflect relative price levels. (10,5)
8		In Canada, the annual balance in the investment income account is typically ______. (8)
9		A ______exchange rate policy is one in which the government sets the exchange rate. (5)
11		When the exchange rate is determined by both market and government forces, this is called a ______policy. (5,5)
12		The ability to produce a good at a lower opportunity cost compared to other nations. (11,9)
14		A ______tariff is usually applied to a product not typically produced in Canada. (7)
15		Trade in goods and services and transfers is shown in the ______account section of the balance of payments. (7)
18		In a given year, a current account deficit implies a capital account ______. (7)
19		The central banks of nations hold quantities of foreign currencies called official international ______. (8)
20		Historically speaking, Canadian tariff policy can be attributed to the ______policy. (8)
22		A tax on an imported product is called a ______. (6)
26		______ is a financial strategy that reduces the chances of suffering losses arising from foreign exchange rate risk. (7)
27		Trade in financial assets is shown in the ______account section of the balance of payments. (7)
29		A ______ balance in the balance of trade means that, during the year, imports exceeded exports. (7)
30		The trade organization that replaced GATT is called ______in its abbreviated form. (3)
31		A policy that restricts the quantity of imports is called a ______. (5)