chapter 29 - International Trade

• open economy - an economy that engages in international trade
• imports - goods and services that are bought from other countries
• exports - goods and services that are sold to other countries
• balance of trade - measures the difference between visible imports and visible exports
• visible trade - physical goods that are imported and exported to and from Ireland
• balance of payments - measures the difference between total exports and total imports
• free trade - enables countries to buy and sell each others goods and services without barriers to trade such as tariffs, quotas or embargoes
• tarrifs - a tax placed on imported goods
• quota - a limit on the number of products that may be imported
• embargo - a complete ban of all imports from or exports to a particular country - often imposed for political, economic or environmental reasons
• subsity - a government gives financial support ti a domestic industry
• world trade organisation - an international that aims to promote frees trade
• deregulation - occurs when trade barriers are reduced or removed from a market, which enables firms to enter and trade in a market
• protectionism - occurs when governments introduce barriers to trade, such as tariffs, quotas or embargoes