International Flashcards
Free trade
when international trade in goods and services has no obstacles to hinder it.
Protectionism
any policy aimed at preventing free trade
tariff
a tax on imports
quotas
a numerical restriction on imports
infant industry argument
when new small industries are protected from international competition so they can grow
dumping
when goods are exported at a price below the cost of production.
globalisation
when markets, firms, finance and market failure becomes global.
trading bloc
an organisation of countries aimed at freeing trade between them.
Free trade area (FTA)
when countries have free trade between each other but are allowed to set their own protection policies.
Customs union
when countries agree on free trade and a common tariff to the rest of the world.
common market
when there is free movement of goods, services, land, labour and capital across borders of a trade area.
WTO (World Trade Organisation)
the organisation that controls world trade.
Balance of payments
the international payments and trade in goods and services of a country.
current account
the trade of goods and services.
balance of trade
the difference between imports and exports
