Trade

The exchange of goods and services between two parties

Import

Goods and services that a country buys from another country

Export

Goods and services that a country sells to another country

Investment

The allocation of resources with the expectation of future returns or benefits

Migration

The permanent movement of people across countries

Tourism

The movement of people between countries for the purpose of leisure or business

Absolute Advantage

The ability of a country to produce a larger volume of goods or services with fewer imputs compared to another country

Comparative Advantage

The ability of a country to produce a good or service at a lower opportunity cost than other countries

Free Trade

an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services

Tariffs

A tax on imported goods or services

Trade Liberalisation

the removal or reduction of restrictions or barriers on the free exchange of goods between nations.

Free Trade Agreement

an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services

Bilateral FTA

Agreement between two nations to promote trade and commerce

Multilateral FTA

Agreement among multiple countries that treats all parties equally to establish a free trade area

Specialisation

The process wherein a country decides to focus their labour on a specific type of goods or services

Protectionaism

the use of trade barriers and subsidies with the purpose of protecting domestic industries and jobs from foreign competition.

BTC

A model that represents the alternating periods of expansion and contracting in economic activity relative to the trend in the economic growth rate that the economy experiences over time.

Budget Deficit

A situation where expenditure exceeds revenue

Budget surplus

When income or revenue exceeds expenditure