World Trade Vocabulary
Imports: Goods and services purchased from another country.
Exports: Goods and services sold to another country.
Tariff: A tax placed by a government on imports.
Contract: An agreement between two parties to do something.
Export Licence: Government authorization to export a particular product.
Free Trade: An agreement between two countries to reduce or eliminate barriers to trade and investment.
Subsidies: Money or other aid given by a government to support a particular industry or activity.
Quota: Restriction on the quantity of certain goods that can be imported into a country.
Balance of Trade: The difference between a country’s imports and exports.
Foreign Exchange: The exchange of one currency for another.
Trade Deficit: When a country imports more than it exports.
Trade Surplus: When a country exports more than it imports.
Customs: Government agency responsible for controlling imports and exports.
Tariff Rate Quota (TRQ): A specified amount of imported goods that may enter a country without paying duties.
Non-Tariff Barrier (NTB): Regulations or policies that tend to limit or restrict imports.
Government Procurement: The buying of goods and services by a government or government agency.
Export Processing Zone: A geographic area of a country set aside for manufacturing activities that can take advantage of preferential investment or tax treatment.
Countertrade: A trade transaction in which goods are exchanged in opposite directions.
Protectionism: A policy of protecting a country’s domestic industries by restricting imports or subsidizing exports.
Anti-Dumping: A policy to protect domestic industries from selling goods at an unfairly low price in a foreign country.
Third World Countries: Countries with low or middle incomes.
Import Substitution: A policy designed to stimulate the growth of domestic industries.
Globalization: The process of integrating and unifying economies and societies worldwide by removing barriers to trade and investing.
Trade Bloc: A group of countries that agree to integrate their economies by reducing trade barriers between them.
Export Credit: A loan provided by a government that allows an exporter to finance the export of goods or services.
Multilateral Trade Negotiations: Negotiations conducted between more than two parties to resolve trade disputes.
Competition Policy: Rules that are designed to protect competition in markets by putting restrictions on how firms interact.
WTO: The World Trade Organization, the international organization promoting free trade worldwide.
