International Trade and Economics

This set of flashcards covers key vocabulary and concepts related to international trade and economics based on the lecture notes provided.

International Trade

The exchange of goods and services across international territories; includes importing and exporting.

Import

To purchase foreign goods and services from another country.

Export

To sell domestic goods and services to foreign markets.

Balance of Trade

The difference in value between a country's visible exports and visible imports.

Visible Exports

Physical goods sold to other countries.

Visible Imports

Physical goods bought from foreign countries.

Invisible Trade

The movement of services across borders, such as tourism and financial services.

Trade Surplus

A situation where a country’s exports exceed its imports.

Trade Deficit

A situation where a country’s imports exceed its exports.

Specialization

When a country focuses on producing goods in which it has a comparative advantage.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Protectionism

Government policies aimed at restricting imports to protect domestic industries.

Tariff

A tax imposed on imported goods.

Quota

A limit on the amount of a specific good that can be imported.

Subsidy

Financial support given by the government to help domestic producers compete.

Free Trade Agreement

An arrangement between countries to reduce or eliminate trade barriers.

World Trade Organization (WTO)

An international body that regulates and facilitates international trade agreements.

Export-led Growth

Economic growth that is driven by the increase of exports.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Exporting

The act of sending goods or services to another country for sale.

Consumer Choice

The choices available to consumers in the marketplace.

Employment Generation

The creation of job opportunities in the economy.

Import Inflation

Increased prices for imported goods due to currency depreciation.