International Trade: Global Trends & Institutions

These flashcards cover essential terms and definitions related to international trade, globalization, GATT, WTO, and trade agreements.

Globalization

The process of increasing interaction and integration among countries, often measured by the value of trade relative to GDP.

GATT

General Agreement on Tariffs and Trade, created in 1947 to reduce barriers to trade among member countries.

WTO

World Trade Organization, established in 1995 to govern international trade relations and oversee trade disputes.

Most-Favored-Nation (MFN) status

A trade status where a country agrees to extend any favorable trading terms given to one country to all other member countries.

Regional Trade Agreements (RTAs)

Agreements among three or more countries in a region to reduce trade barriers among themselves.

Trade Liberalization

The removal or reduction of trade barriers to facilitate free trade between countries.

Mercantilism

An economic theory that advocates for government regulation of a nation's economy for augmenting state power at the expense of rival national powers, prominent from 1492 until the 1860s.

Dispute Settlement Understanding

The WTO's procedure for resolving trade disputes between member countries.

Reciprocity

An arrangement where one government exchanges trade-policy concessions with another.

Economic Output

The total value of all goods and services produced in a country.