International Trade and Development Vocabulary

Vocabulary terms and definitions regarding international trade, barriers, and economic development based on lecture notes from April 2026.

Free Trade

When government keeps minimum barriers to trade like tariffs, quotas, or bans and movement of capital.

Fair Trade

When companies negotiate directly with the producers to establish fair price for the product to protect local industries.

Trade barriers

Government restrictions that limit imports/Exports.

Trade deficits

When a country imports more goods / services than it exports, so it spends more money than it earns on Foreign trade.

Opportunities for development

The process where trade creates jobs, attracts foreign investment, improves infrastructure, and gives access to new technology and skills.