economics

absolute advantage

The ability of a country or individual to produce a good or service more efficiently than another, using fewer resources.

comparative advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than another, allowing for mutually beneficial trade.

import

The act of bringing goods or services into a country from abroad for sale.

export

The act of sending goods or services from one's country to another for sale.

trade barrier

Any regulation or policy that restricts international trade.

free trade agreement

A treaty between countries that outlines the terms of trade, reducing or eliminating tariffs and trade barriers to promote economic cooperation.

exchange rate

The value of one currency in relation to another, determining how much of one currency can be exchanged for a unit of another.