Terms

**Lesson 1**
= ﻿ International Trade =



**International Trade** Is the exchange of capital, goods and services across international borders

Local Trade
Is the exchange of goods and services within the same countries

Good
Is something that satisfies a need. A good is tangible A piece of land, food, clothes, cars, money and computers are examples of goods -In marketing, a product is a bundle of goods and services

Service
A service is something intangible that satisfies a need For example: transportation, security, entertainment, electricity, gas, water or banking

Currency= Money
US $ Dollars, Euros, Pound Sterling, Yen

Consumer
A person who buys goods or services for their own use

Producer - Manufacture
One that produces, especially a person or organization that produces goods or services for sale

Barter
A person that exchange goods for other things rather than for money

Hinder- Hinderance
To limit the ability of someone to do something, or to limit the development of something

Free Trade
A system in wich goods, capital, and labor flow freely between nations, without barriers wich could hinder the trade process

Tariffs
Tax or duty placed on an imported good by domestic government

Gross Domestic Product
The value of all the goods and services produced in a country

Indebted
Morally, socially, or legally obligated to another; beholden

Boundaries
Something that indicates a border or limit

Silk Road
A network of trade routes across the Asian continent, connected East,South and Western Asia with the Mediterranean world, as well as North, East and Northeast Africa and Europe. It began in central China and stopped somewhere near the mediterranean sea

Fair Trade
The practice of directly benefiting producers in the developing world by buying straight from them at a guaranteed price

Foreign Exchange Markets
Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economy **Output** An amount of something produced by a person, machine, factory, country, etc

Swell
To become larger and rounder than usual; to (cause to) increase in size or amount

Engage
To employ someone

Driven
Describes someone who is so determined to achieve something or be successful that all their behaviour is directed towards this aim

Restrict
To limit the movements or actions of someone, or to limit something and reduce its size or prevent it from increasing

Dumping
Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment, that is, selling the product at less than fair value. Dumping is an illegal trade practice

Retailer
A person, shop or business that sells goods to the public

Survey
An examination of opinions, behaviour, etc., made by asking people questions

Expertise
A high level of knowledge or skill

Cornerstone
Something of great importance which everything else depends on

Towards
In the direction of, or closer to someone or something

Assets
(In business) buildings, equipment and land owned by a company

Foreign Direct Investment
Is the amount of money that individuals invest into foreign companies and other assets

Revenue
The income that a government or company receives regularly

Protectionism
The actions of a government to help its country's trade or industry by taxing goods bought from other countries

Supply
The amount of goods or services avaible for purchase

Specialization
A method of production in which companies focus on a limited number of products and services which they can do best

Demand
The desire of a consumer to purchase a good or service at a price

Opportunity Costs
Are the benefits you would have received if you had made an alternative choice

Comparative Advantage
Exists when a country, region or company can produce goods or services at a lower opportunity cost than its competitor

Absolute Advantage
Exists when a country, region or company can produce goods or services at a lower cost than its competitors using the same resources

Quota
A limit set on the amount of a product that can be either imported or exported during a given time period

Export
A product which is produced in one country and then sent to another

**Import**
Any resource, intermediate good, or final good or service that buyers in one country purchase from sellers in another country

** Capital **
The amount of cash and assets owned by a business

Subsidy
The financial aid paid to a business or economic sector by the government

Balance of Payment
The International Monetary Fund’s accounting system that tracks the flow of goods, services, and capital in and out of each country

The difference between a country’s total imports and exports over a set period
= Lesson 2 =

World Trade Organization
== A multilateral organization that promotes free and fair trade among the nations of the world. It was created in 1994 by 121 nations at the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The WTO is responsible for implementation and administration of the trade agreement ==

General Agreement on Tariff and Trade (GATT)
A post-World War II agreement designed to promote freer international trade among the nations of the world. The GATT was replaced by the World Trade Organization (WTO) in 1994.

**General Agreement on Trade in Services (GATS)** Is a treaty of the World Trade Organization (WTO) that entered into force in January 1995 as a result of the Uruguay Rounds negotiations. The treaty was created to extend the multilateral trading system to service sector, in the same way the General Agreement on Trade in Services (GATT) provides such a system for merchandise trade

Doha Development Agenda
The **Doha Development Round** or **Doha Development Agenda (DDA)** is the current trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001. Its objective is to lower trade barriers around the world, which will help facilitate the increase of global trade

Agreement onTrade-Related Aspects of Intellectual Property Rights (TRIPS)
The **Agreement on Trade Related Aspects of Intellectual Property Rights** (**TRIPS**) is an international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation as applied to nationals of other WTO Members.It was negotiated at the end of the Uruguay Round of the General Agreements (GATT) in 1994.