OLEVEL PAK STUDIES I 2059/02 I TRADE

Flashcards for vocabulary review

Trade

The exchange of capital, goods, and services across international borders.

Domestic Trade

Trade that takes place inside the country.

International Trade

Trade that takes place between two different countries.

Import

Goods and services which one country buys from another, so foreign exchange leaves the country.

Export

Goods and services which one country sells to another thus earning foreign exchange.

Gross Domestic Product (GDP)

Measures the value of goods and services produced within a country's borders, by citizens and non-citizens alike.

Gross National Product (GNP)

Measures the value of goods and services produced by only a country's citizens but both domestically and abroad.

Balance of Trade

The difference between visible imports and visible exports.

Balance of Payments

The difference between (visible and invisible imports) and (visible and invisible exports).

Negative Balance of Trade/Payment

The value of imports exceeds that of its exports.

Trade Barriers

Exist when the Government imposes a set of restrictions that make it difficult for countries to trade their goods and services effectively and easily.

Tariffs

Taxes on imports

Embargoes

A ban on certain imported products

Quotas

Impose restrictions on the physical quantity of goods imported

Trading Blocs

Refers to regional groupings of international economies to allow for greater economic cooperation and facilitation of free trade.

Exchange Rate

An exchange rate refers to the price of one currency in terms of another currency

Currency Depreciation

A decrease in the value of a currency.

Currency Appreciation

An increase in the value of a currency