International Trade

World Trade Organization (WTO)

An international body that sets the rules for global trade and resolves disputes between member nations.

Most-Favoured-Nation (MFN) Status

A core WTO principle requiring member states to accord the exact same trade conditions and tariff rates to all WTO members (preventing economic discrimination).

Multinational Corporations (MNC)

Large firms that operate, produce, or market goods and services in multiple countries across the globe.

Interdepedence

The mutual reliance between different countries' economies, where economic choices and shocks in one nation directly impact others.

Trade-Off (Choice)

The sacrifice of domestic policy autonomy or equity in order to achieve greater global trade efficiency and market access.

Trade Liberalization

The deliberate removal or reduction of restrictions or barriers (such as tariffs, quotas, and administrative red tape) on the free exchange of goods between nations.

International Trade

Is the exchange of goods, services, and or capital between sovereign nations across national borders

Embargo

A complete ban on trade with a particular country or on particular goods

Administrative barriers

Government regulations and bureaucratic procedures that make importing foreign goods more difficult or expensive, restricting international trade

Quota

A legal limit on the amount of goods that can be imported over a particular period of time

Subsidy

payment per unit from the government to producers to increase consumption of a good 

Export Subsidy

Government financial assistance given to domestic producers to help them compete in international markets by making their exports more competitive.

Import Subsidy

Government financial assistance that reduces the cost of importing goods or purchasing imported goods

Domestic Producer Subsidy

Government financial assistance given to domestic producers to lower their production costs and encourage domestic production