The international economy

• Absolute advantage: When an economy is able to produce greater quantity of output with the same quantity of input.
• Comparative advantage: When an economy is able to produce a greater quantity of output at a lower opportunity cost.
• Bilateral aid: Aid given from one country to another.
• Debt relief: Partial or total forgiveness of debt slowing of debt growth.
• Economic integration: The process by which economies become more closely linked.
• Developing countries: Countries with low GDP per capita; tend to export agriculture.
• Economic development: Assessing the standards of living and economic welfare of those in a country.
• Emerging countries: Countries that aren't fully developed, yet are more developed than LEDCs.
• Free trade: Trade with no barriers or restrictions.
• Foreign direct investment (FDI): When firms in one country make investments into another country.
• Human Development Index (HDI): Measures an economy's development based on 3 main criteria; life expectancy, educational achievement, and living standards.
• Protectionism: When governments enact policies to restrict the free entry of imports into an economy.
• Quota: A limit on the amount of a good that can be imported into a country.
• Multi-national corporation (MNC): Firms that operate in multiple countries.
• Sustainability: Meeting present-day needs without putting the future at risk.
• Tariff: Form of tax placed on imported goods, making them less price competitive to disincentivise consumption
• Trade liberalisation: Reduction or removal of protectionist policies.
• Trading bloc: Government agreements that promote trade between certain countries.