International Trade Flashcards
International trade
The exchange of goods and services between countries
Imports
Goods and services bought from abroad
Export
Goods and service sold abroad
European Union
Economic and political group of countries in Europe that have free trade with each other
Free trade agreement
Arrangements to move goods and services between countries without any restrictions
Balance of payments
The record of all financial transactions between one country and the rest of the world
Current account
The record of trade in goods and services, income flows and transfers between one country and rest of the world
Balanced current account
Where the sun of exports plus the inflow of income and transfers is equal to the sum of imports plus the outflow of income and transfers
Currency
The system of money used in a country or group of countries
Exchange rates
The price of one currency in terms of another currency
Globalisation
Integrations of countries through trade
Development
The process of increasing people’s standard of living and wellbeing overtime
Developed country a country with high gdp per capita and established industry and service sectors
Less developed country
A country with a developing economy that has lower gdp per capita, lower levels of industrialisation and weaker indicators of wellbeing
