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
Balance of Trade
The difference between a country’s total imports and exports over a set period
Lesson 2
The World Trade Organization
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.
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 countriesGood
Is something that satisfies a need. A good is tangibleA 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 needFor example: transportation, security, entertainment, electricity, gas, water or banking
Currency= Money
US $ Dollars, Euros, Pound Sterling, YenConsumer
A person who buys goods or services for their own useProducer - Manufacture
One that produces, especially a person or organization that produces goods or services for saleBarter
A person that exchange goods for other things rather than for moneyHinder- Hinderance
To limit the ability of someone to do something, or to limit the development of somethingFree Trade
A system in wich goods, capital, and labor flow freely between nations, without barriers wich could hinder the trade processTariffs
Tax or duty placed on an imported good by domestic governmentGross Domestic Product
The value of all the goods and services produced in a countryIndebted
Morally, socially, or legally obligated to another; beholdenBoundaries
Something that indicates a border or limitSilk 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 seaFair Trade
The practice of directly benefiting producers in the developing world by buying straight from them at a guaranteed priceForeign Exchange Markets
Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economyOutput
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 amountEngage
To employ someoneDriven
Describes someone who is so determined to achieve something or be successful that all their behaviour is directed towards this aimRestrict
To limit the movements or actions of someone, or to limit something and reduce its size or prevent it from increasingDumping
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 practiceRetailer
A person, shop or business that sells goods to the publicSurvey
An examination of opinions, behaviour, etc., made by asking people questionsExpertise
A high level of knowledge or skillCornerstone
Something of great importance which everything else depends onTowards
In the direction of, or closer to someone or somethingAssets
(In business) buildings, equipment and land owned by a companyForeign Direct Investment
Is the amount of money that individuals invest into foreign companies and other assetsRevenue
The income that a government or company receives regularlyProtectionism
The actions of a government to help its country's trade or industry by taxing goods bought from other countriesSupply
The amount of goods or services avaible for purchaseSpecialization
A method of production in which companies focus on a limited number of products and services which they can do bestDemand
The desire of a consumer to purchase a good or service at a priceOpportunity Costs
Are the benefits you would have received if you had made an alternative choiceComparative Advantage
Exists when a country, region or company can produce goods or services at a lower opportunity cost than its competitorAbsolute Advantage
Exists when a country, region or company can produce goods or services at a lower cost than its competitors using the same resourcesQuota
A limit set on the amount of a product that can be either imported or exported during a given time periodExport
A product which is produced in one country and then sent to anotherImport
Any resource, intermediate good, or final good or service that buyers in one country purchase from sellers in another countryCapital
The amount of cash and assets owned by a businessSubsidy
The financial aid paid to a business or economic sector by the governmentBalance of Payment
The International Monetary Fund’s accounting system that tracks the flow of goods, services, and capital in and out of each countryBalance of Trade
The difference between a country’s total imports and exports over a set period
Lesson 2
The World Trade Organization
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 tradeAgreement 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.