Global Trade and Economic Concepts

These flashcards cover key terms and concepts from the lecture about global trade, economic systems, and their implications.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Complementarity

A situation in which two countries have different resources or specializations, allowing them to trade effectively with each other.

Free Trade Agreement

An agreement between countries to reduce or eliminate trade barriers, such as tariffs, to enhance trade between them.

Tariff

A tax imposed on imported goods and services, making them more expensive and less competitive against domestic products.

Special Economic Zone (SEZ)

A designated area within a country that has different economic regulations to attract foreign investment and businesses.

Export Processing Zone (EPZ)

A specific area focused on exporting goods, often with favorable trade regulations to encourage production.

Deindustrialization

The decline of industrial activity in a region or economy, often due to outsourcing or advancements in automation.

International Division of Labor

A production process where the work is divided among countries, each specializing in different production stages.

Growth Pole

An area in which economic activities are clustered that spur further economic development and the creation of supporting industries.

Post-Fordism

A method of production characterized by flexible processes and a focus on efficiency, relying more on technology and less on human labor.