International Trade Overview

This set of vocabulary flashcards covers the fundamental concepts, history, and facets of international trade based on the lecture transcript.

Trade

The voluntary exchange of goods and services.

National Trade

The exchange of goods and services from one part of a country to the other.

International Trade

The exchange of goods and services among different countries across the national boundaries.

Barter System

An exchange of goods without involving currency, which still exists in many tribal areas of the world.

Jonbeel Mela

A fair in Assam, occurring in the month of January after the harvest season, which is perhaps the only fair in India where the barter system still works very well.

Salarium

The Latin word meaning payment by salt, from which the word salary is derived.

Silk Route

A $6000\,cm$ long land trade route connecting Rome to China, used by caravans to trade Chinese silk, Roman wool, and other high-value commodities.

Slave Trade

A lucrative trade emerging in the fifteenth century where Europeans captured African natives and transported them to the Americas as plantation laborers.

Industrial Revolution

A period from $1780$ to $1820$ that shifted international trade trends toward the demand for raw materials and the export of finished products.

Geological Structure

A factor of international trade that determines relief, mineral resources, crops, and animals; agriculture flourishes in plains while mountains attract tourists.

Cultural Factors

The population factor where distinctive forms of art and craft, such as Chinese porcelains, Iranian carpets, and Indonesian batik, create value in the international market.

Composition of Trade

An aspect of international trade referring to the types of goods and services exchanged, which has shifted from primary products to manufactured goods and petroleum.

Bilateral Trade

The exchange of commodities between two countries, often occurring when economies are complementary to each other.

Multilateral Trade

The exchange of goods and services among a number of countries.

Balance of Trade

The difference between the value of a nation's exports and imports of all goods and services over a given period of time.

Positive Balance of Trade

A condition where the value of a country's exports is more than the value of its imports.

Negative Balance of Trade

A condition where the value of a country's exports is lower than the value of its imports, potentially leading to the exhaustion of financial reserves.

Free Trade

The act of opening up economies for trading by removing trade barriers like tariffs, also known as trade liberalisation.