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HomeHomework HelpeconomicsInternational Trade and Development

International Trade and Development

International Trade and Development refers to the exchange of goods and services across national borders and the economic growth processes that aim to improve the living standards and quality of life in developing countries, often involving the transfer of technology, resources, and knowledge. This concept encompasses the interplay between economic policies, environmental sustainability, and social equity in fostering global economic relationships.

intermediate
5 hours
Economics
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Overview

International trade and development are crucial for the economic growth of nations. By engaging in trade, countries can specialize in producing goods they are efficient at, leading to increased productivity and economic benefits. Trade agreements and policies play a significant role in shaping the l...

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Key Terms

Tariff
A tax imposed on imported goods.

Example: Countries may impose tariffs to protect local industries.

Quota
A limit on the amount of a specific good that can be imported.

Example: A country may set a quota on the number of cars imported each year.

Comparative Advantage
The ability of a country to produce a good at a lower opportunity cost than another.

Example: Country A has a comparative advantage in producing wine over textiles.

Free Trade Agreement
An agreement between countries to reduce or eliminate trade barriers.

Example: NAFTA is a free trade agreement between the U.S., Canada, and Mexico.

Globalization
The process of increased interconnectedness among countries, especially in trade.

Example: Globalization has led to more international businesses operating worldwide.

WTO
World Trade Organization, an international body that regulates trade between nations.

Example: The WTO helps resolve trade disputes between member countries.

Related Topics

Globalization
The process of increased interconnectedness among countries, affecting trade and culture.
intermediate
Economic Policy
The actions taken by a government to influence its economy, including trade policies.
intermediate
Trade Barriers
Government-imposed restrictions that affect international trade, such as tariffs and quotas.
intermediate

Key Concepts

trade agreementseconomic growthglobalizationtrade barriers