International Trade, Globalisation, and Transnational Corporations

Vocabulary flashcards covering core concepts of international trade, trade policies, the World Trade Organization, globalisation, and multinational corporations.

International trade

The buying and selling of goods and services between countries.

Exports

Goods and services sold overseas.

Imports

Goods and services bought from overseas.

Free trade agreement (FTA)

An agreement between countries to reduce barriers to trade.

Trade protectionism

Government policies designed to protect domestic industries from foreign competition.

Trade liberalisation

The reduction of barriers to international trade to encourage the movement of goods and services between countries.

Tariffs

Taxes placed on imported goods, making them more expensive.

Quotas

Limits placed on the quantity of certain goods that can be imported.

Subsidies

Government financial support provided to domestic businesses.

Import restrictions

Rules enacted by governments that limit or prevent certain imports.

Trade balance

The difference between the value of a country's exports and imports of goods and services.

Trade surplus

An economic condition that occurs when the value of exports exceeds the value of imports.

Trade deficit

An economic condition that occurs when the value of imports exceeds the value of exports.

World Trade Organization (WTO)

An international organisation that helps establish and oversee rules for trade between countries and resolve trade disputes.

Globalisation

The increasing connection and interdependence of countries through trade, investment, technology, communication, and movement of people.

Multinational corporations (MNCs)

Businesses that operate in more than one country, often through overseas branches or subsidiaries.

Transnational corporations (TNCs)

Businesses that operate across multiple countries, often with highly integrated international operations and decision-making.

Stakeholder

A person or group affected by a business's actions.