International Trade Vocabulary

Flashcards from the International Trade Lecture

Globalization

Flow of goods and services, movement of people and firms, spread of culture, and integration of financial markets.

International Trade

Buying and selling of goods and services across national borders.

Export

Product sold from one country to another.

Import

Product bought by one country from another.

Trade Balance

Difference between total exports and imports.

Trade Surplus

Exports exceed imports.

Trade Deficit

Imports exceed exports.

Bilateral Trade Balance

Difference between exports and imports between two countries.

Immigrants

People entering a country to live.

Emigrants

People leaving a country to live elsewhere.

Refugees

Migrants whose safety is endangered in their home country.

Foreign Direct Investment (FDI)

Firm in one country owns some or all of a firm in another country.

Trade in services

Buying and selling of intangible products across international borders

Trade Barriers

All factors that influence the amount of goods and services shipped across international borders.

Political Economy

Explanations for tariffs combining economic and political reasoning.

Import Quotas

Limitation on the quantity of an imported good allowed into a country

Trade War

Countries retaliate to tariffs by applying higher tariffs.

Horizontal FDI

FDI when a firm from an industrial country owns a company in another industrial country.

Vertical FDI

FDI when a firm from an industrial country owns a plant in a developing country.

Gross Domestic Product (GDP)

Value of all final goods produced in a year.