Economia Internacional Glossary Notes

Introduction

• The glossary created to aid candidates in understanding complex terms and concepts in international economics.
• Designed for both beginners and advanced learners.
• Terms are listed alphabetically for ease of access.

Terms and Licensing

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• The glossary is protected by copyright law.

Glossary Overview

A

• Acordo de Livre Comércio (Free Trade Agreement): A pact between two or more countries to reduce or eliminate trade barriers like tariffs and quotas.
• Adam Smith: The father of modern economics; known for "The Wealth of Nations" and theories on absolute advantage in international trade.
• Área de Livre Comércio (Free Trade Area): A region where countries agree to eliminate trade barriers.
• Arranjo Contingente de Reservas (ACR): A financial protection mechanism among BRICS countries.

B

• Balanço de Pagamentos: Systematic record of all economic transactions between residents of a country and the rest of the world.
• Banco dos BRICS: Multilateral financial institution for infrastructure projects in BRICS countries.
• Banco Interamericano de Desenvolvimento (Inter-American Development Bank): Promotes sustainable economic development in Latin America.
• Banco Mundial (World Bank): Provides long-term financing for projects aimed at reducing poverty.

C

• Cadeias Globais de Valor (Global Value Chains): Networks of production, distribution, and consumption that transcend national boundaries.
• CEPAL (Economic Commission for Latin America and the Caribbean): A UN body focused on economic and social development analysis.
• Cláusula da Nação Mais Favorecida (Most Favored Nation Clause): Trade principle ensuring equal concessions among all GATT members.
• Commodity: Goods traded on the market that are homogeneous regardless of origin.
• Condição de Marshall-Lerner: Economic principle relating exchange rate depreciation and trade balance.
• Conta Corrente (Current Account): Part of the balance of payments monitoring the flow of goods, services, and income.
• Conteúdo Nacional (Local Content): Requirement for a certain percentage of production inputs to be sourced locally.
• Curva J (J-Curve): Describes initial worsening of a country's trade balance following currency depreciation before improvement.

D

• David Ricardo: Key figure in classical economics known for the theory of comparative advantage.
• Déficit: Situation where expenses exceed revenues.
• Deterioração dos Termos de Troca: Declining exchange conditions for countries reliant on primary exports.
• Dumping: Selling products in a foreign market at prices lower than domestic costs.

E

• Economia de Escala (Economies of Scale): Cost advantages gained when production increases.
• Economias de Escala Externa e Interna: External economies arise at the industry level, internal economies occur within a company.
• FMI (International Monetary Fund): Promotes global monetary cooperation and financial stability.
• GATT (General Agreement on Tariffs and Trade): Aimed to reduce trade barriers; precursor to WTO.

I

• Inshore vs. Offshore: Operating domestically vs. in foreign jurisdictions for business advantages.
• Internacionalização da Economia (Internationalization of the Economy): Increasing interdependence and integration of national economies.

L

• Liquidez (Liquidity): A country's ability to meet short-term financial obligations.
• Mercado Comum (Common Market): An economic bloc allowing free movement of goods, services, capital, and labor.
• Mercosul: South American trade bloc promoting economic integration among its members.
• Modelo Heckscher-Ohlin: Explains international trade based on differences in factor endowments.
• Offshore: Engaging in financial activities outside an investor’s home country.

O

• Organização Mundial do Comércio (WTO): Facilitates international trade agreements and dispute settlements.
• Outsourcing: Delegating business processes to external parties.

P

• Padrão-Dólar-Ouro (Gold Dollar Standard): Monetary system linking the dollar to gold, ended in 1971.
• Padrão-Ouro (Gold Standard): A monetary system where currency value was directly linked to gold.
• Política Comercial (Trade Policy): Strategies affecting international trade.
• Política Cambial (Exchange Policy): Regulations governing foreign trade.
• Prebisch: Economist known for contributions to the terms of trade theory regarding primary product dependency.

Q

• Quota: Limits on the amount of goods imported or exported.

R

• Reservas Internacionais (International Reserves): Assets held by a country’s central bank to back its liabilities.
• Reshore: Returning production to the home country after offshoring.
• Rodada Uruguai (Uruguay Round): Important trade negotiations leading to the establishment of the WTO.
• Subsídios (Subsidies): Financial support from government to encourage local production.

S

• Swap: Financial agreement to exchange cash flows or financial instruments.
• Tarifa (Tariff): Tax on imported goods to protect local industries.
• Taxa de Câmbio Fixa (Fixed Exchange Rate): Currency value pegged to another currency or benchmark.
• Taxa de Câmbio Flutuante (Floating Exchange Rate): Currency value determined by market forces.
• Teoria da Dependência (Dependency Theory): Critique of international trade favoring industrialized nations.
• Teoria Quantitativa da Moeda (Quantitative Theory of Money): Relationship between money supply and price levels.

T

• Terceirização (Outsourcing): Allocating production or business processes to external organizations.
• Termos de Troca (Terms of Trade): Ratio of export prices to import prices.
• Tratamento Nacional (National Treatment): Equal treatment of domestic and imported goods.
• União Aduaneira (Customs Union): Agreement to eliminate tariffs and establish common external policies.
• União Monetária (Monetary Union): Agreement sharing a common currency.
• Vantagens Absolutas (Absolute Advantages): Production ability at lower cost.
• Vantagens Comparativas (Comparative Advantages): Specializing based on lower opportunity costs in production.