Glossary of Economics and Trade

The ability of a country, individual, or company to produce a good or service at a lower cost per unit than its competitors.

A record of all economic transactions between residents of a country and the rest of the world in a particular period.

The difference between a country's exports and imports of goods. If exports exceed imports, there is a trade surplus; if imports exceed exports, there is a trade deficit.

The ability of a party to produce a particular good or service at a lower opportunity cost than another party.

A system of money in general use in a particular country, such as the US dollar, Euro, or Japanese yen.

A decrease in the general price level of goods and services, often caused by a reduction in the money supply or credit availability.

The amount of a good or service that consumers are willing and able to purchase at various price levels during a specific period.

The practice of selling goods in a foreign market at below their cost of production or below the domestic market price.

A tax imposed on imports and exports by the customs authority of a country.

An increase in the production of goods and services over a specific period, typically measured by the change in Gross Domestic Product (GDP).

A measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants.

The value of one currency for the purpose of conversion to another.

Goods or services produced in one country and sold to buyers in another.

Costs or benefits that affect a party who did not choose to incur that cost or benefit, such as pollution or education positive effects.

The use of government spending and taxation to influence the economy.

An investment made by a firm or individual in one country into business interests located in another country.

A trade policy that does not restrict imports or exports between countries, allowing goods and services to flow across borders without government intervention.

The total monetary value of all finished goods and services produced within a country's borders in a specific time period.

The process of interaction and integration among people, companies, and governments worldwide, especially through international trade and investment.

Goods or services brought into a country from abroad for sale.

A sustained increase in the general price level of goods and services in an economy over a period of time.

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

The market in which workers compete for jobs and employers compete for workers.

The efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.

An economic system in which decisions regarding investment, production, and distribution are guided by the prices of goods and services generated by supply and demand.

A market structure characterized by a single seller or producer with no close substitutes and significant barriers to entry.

A company that operates in its home country as well as in other countries around the world.

The value of the next best alternative forgone when a decision is made; the cost of forgoing the next best opportunity.

A market structure dominated by a small number of sellers who account for a large percentage of the market.

The economic policy of restricting imports from other countries through methods such as tariffs and quotas in order to protect domestic industries.

An economic theory that compares different currencies' purchasing power through a "basket of goods" approach.

Goods that are non-excludable and non-rivalrous, such as national defense, public parks, and street lighting, which are typically provided by government.

A monetary policy where a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time period.

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

The total amount of a specific good or service that is available to consumers at various price levels.

A tax imposed by a government on imported or exported goods.

An economic measure of international trade in which a country's imports exceed its exports.

An economic measure of a positive balance of trade, where a country's exports exceed its imports.

The state of being involuntarily out of work; the percentage of the labor force that is jobless and actively looking for work.

A measure of satisfaction or pleasure that consumers derive from consuming goods and services.

A consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

The only global international organization dealing with the rules of trade between nations, functioning as a forum for negotiating trade agreements and settling trade disputes.

A situation in which one person's gain is equivalent to another's loss, so the net change in wealth or benefit is zero.