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Trade unions

Trade Agreements

Free Trade

Customs Union

Common Market

Whenever some countries sit together and decide to eliminate tariffs, import quotas, and preferences on most (if not all) goods and services traded between them.

Similar to a free trade agreement (FTA), with a comprehensive coverage of trade in goods and services and investments, as well as intellectual property rights.

A type of trade bloc which is composed of a free trade area (for goods) with common policies on product regulation, and freedom of movement of the factors of production (capital and labour) and of enterprise and services.

Import Substitution and Export Promotion

Imports

Exports

This strategy emphasises import substitution,,the production of goods at home that would otherwise be imported.

This strategy focuses on export-promotion, whereby policy measure such as export subsidies, encouragement of skill formation in the labour force and the use of more advanced technology, and tax concessions generate more exports, particularly labour intensive manufactured exports in accordance with the principle of comparative advantage

Balnace of Payments

deficit

surplus

means the country imports more goods, services and capital than it exports

means the country exports more than it imports

Foreign Exchange Market

Is a global online network where traders buy and sell currencies

Interbank Market

Over-the-counter market

It's where the biggest banks exchange currencies with each other.

That's where and individuals trade

Purchasing Power Parity

is an economic theory that states residents of one country should be able to buy the goods and services at the same price as inhabitants of any other nation over time.