Economia Internacional Glossary Notes

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.