(7) Cluster 3: Global Trade, Finance & Logistics

Free Trade Agreement

A treaty between two or more countries aimed at reducing or eliminating barriers to trade.

Tariff

A tax or duty to be paid on a particular class of imports or exports.

Customs Union

An agreement between countries to remove trade barriers among members while adopting a common external tariff on non

Mercosur

South American trade bloc established in 1991 including Argentina, Brazil, Paraguay, and Uruguay.

World Trade Organization (WTO)

A supranational organization established in 1995 that regulates and facilitates international trade between over 160 member nations.

International Monetary Fund

A global organization created to promote economic stability, monetary cooperation, and international trade by providing loans to countries facing balance

World Bank

An international financial institution established in 1944 that provides loans and grants to the governments of low and middle

Organization of Petroleum Exporting Countries (OPEC)

Permanent intergovernmental organization founded in 1960 to coordinate petroleum policies and stabilize oil markets.

Transnational Corporation (TNC)

Large companies that manage production or deliver services in multiple countries while maintaining a headquarters in one country.

Financial Market

Central to global economic integration, with major hubs such as New York, London, and Tokyo managing capital flows.

Trade Embargo

A government

Protectionism

Economic policy of restricting imports via tariffs, quotas, or regulations to protect local industries from foreign competition.

Commodity Dependence

Occurs when a country relies on a single raw material (agricultural or mineral) for over 60% of its total export revenue.

Debt Crisis

When a country or developing nation becomes unable to pay back the interest or principal on its massive accumulated debt.

Microloan

A small sum of money lent at low interest to a new business.

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Containerization

A system of intermodal freight transport using standardized steel containers to move goods efficiently across ships, trains, and trucks.

Shipping Containers

Large steel boxes used to transport goods efficiently across ships, trains, and trucks without unloading contents.

Formal Sector

The legal and regulated parts of an economy, where businesses and workers adhere to established rules, laws, and regulations.

Informal Sector

Economic activities that are not regulated by the government and typically operate outside formal labor laws and protections.

Wage Labor

A socioeconomic relationship in which an employer pays a worker to complete a task, sometimes by the day or by the hour.