keyterms unit 17 international trade

international trade

purchase, sale or exchange of goods or services across nations

free trade

The trade policy that does not restrict imports or exports. It can be also understood as free trade idea applied to international trade

protectionism

the economic trade of restraining trade between nations, through methods such as tariff on imported goods, restritive quotas and a variety of of other government regulations designed to discourage imported goods, and prevent foreign take-over goods from the local markets and companies

trade barriers 

Government laws, regulations, policies or practices that either protect domestic products from foreign competition or artificially stimulate exports of particular domestic products.

tariff

A duty (or tax) levied upon goods transported from one Customs area to another, for either protective or revenue purposes. Tariffs raise the prices of imported goods, thus making them generally less competitive within the market of the importing country, unless that country does not produce the items so tariffed

quota

Restriction on the amount (measured in units or weight) of a good that can

enter or leave a country during a certain period of time.

absolute advantage

Ability of a nation to produce a good more efficiently than any other nation.

comparative advantage

Inability of a nation to produce a good more efficiently than other nations, but an ability to produce that good more efficiently than it does any other good.

an infant strategy 

a new industry, which in its early stages experiences relative difficulty or is absolutely incapable of competing with established competitors abroad.

a strategic industry

an industry which is essential for the promotion or stabilization of the growth of the locality in which that industry is situated.