tradenoun / verb
trayd
The exchange of goods and services between countries. International trade is one of the primary drivers of economic growth.
"International trade accounts for approximately 28% of global GDP."
importnoun / verb
IM-port
Goods or services brought into a country from abroad for sale or use.
"Germany imports the majority of its energy, leaving it vulnerable to supply disruptions."
exportnoun / verb
EK-sport
Goods or services produced in one country and sold to other countries.
"South Korea's exports — electronics, cars, ships — make up a large share of its GDP."
trade balancenoun phrase
trayd BAL-uns
The difference between the value of a country's exports and imports. Can be positive (surplus) or negative (deficit).
"The US has run a persistent trade deficit — it imports more than it exports year after year."
surplusnoun
SUR-plus
When a country exports more than it imports, resulting in a positive trade balance. Often seen as a sign of economic strength.
"Germany consistently runs a large trade surplus — its economy is built on exports."
deficitnoun
DEF-ih-sit
When a country imports more than it exports (trade deficit), or spends more than it collects in taxes (budget deficit).
"The US trade deficit with China has been a source of political tension for decades."
tariffnoun
TAR-if
A tax imposed by a government on imported goods, making them more expensive and protecting domestic producers.
"The US imposed 25% tariffs on Chinese steel in 2018, escalating a trade war."
sanctionnoun
SANK-shun
An economic penalty applied by one country or group of countries to another to pressure a change in behavior.
"Western sanctions on Russia targeted its energy sector, financial system, and luxury imports."
embargonoun
em-BAR-goh
A complete ban on trade with a specific country, or on specific goods — stronger than a tariff or sanction.
"OPEC's 1973 oil embargo against the US caused an immediate energy crisis."
supply chainnoun phrase
suh-PLY chayn
The sequence of suppliers, manufacturers, and distributors involved in producing and delivering a product from raw material to consumer.
"COVID-19 disrupted global supply chains — components from one country could not reach factories in another."
comparative advantagenoun phrase
kom-PAR-uh-tiv ad-VAN-tij
The ability of a country to produce a specific good more efficiently relative to other goods — the basis for why countries specialize in trade.
"Bangladesh has a comparative advantage in garment manufacturing — lower costs and established expertise."
free tradenoun phrase
free trayd
Trade between countries with no tariffs, quotas, or government restrictions — goods flow freely across borders.
"Supporters of free trade argue it raises living standards; critics say it destroys domestic industries."
protectionismnoun (uncountable)
pruh-TEK-shun-iz-um
Government policies that restrict imports — tariffs, quotas, subsidies — to shield domestic industries from foreign competition.
"Rising protectionism risks reversing decades of globalization and increasing costs for consumers."
WTOabbreviation
dub-ul-yoo-tee-oh
World Trade Organization — the international body that sets and enforces global trade rules and resolves disputes between member countries.
"The WTO's dispute settlement mechanism allows countries to formally challenge unfair trade practices."
bilateraladjective
by-LAT-er-ul
Involving two parties, typically two countries — a bilateral trade agreement is between two nations only.
"The UK negotiated a bilateral trade deal with Australia following Brexit."
multilateraladjective
mul-tih-LAT-er-ul
Involving many parties or countries simultaneously — most global institutions operate on a multilateral basis.
"The WTO operates multilaterally — its rules apply to all 164 member countries equally."
globalizationnoun (uncountable)
gloh-bul-ih-ZAY-shun
The process of increasing economic, cultural, and political integration between countries — goods, capital, and people move more freely.
"Globalization reduced the cost of manufactured goods but contributed to deindustrialization in Western countries."
outsourcingnoun
OWT-sor-sing
Moving business operations or production to another company or country to reduce costs.
"Tech companies outsourced call centers to India, taking advantage of lower wages and English language skills."
most favored nationnoun phrase
mohst FAY-verd NAY-shun
A trade status guaranteeing that a country receives the same favorable trade terms as the most preferred trading partner. Abbreviated MFN.
"China was granted most favored nation status by the US in 2001 upon entering the WTO."
trade warnoun phrase
trayd wor
A conflict in which countries impose escalating retaliatory tariffs on each other's goods, harming both economies.
"The 2018–2020 US-China trade war raised tariffs on hundreds of billions of dollars of goods on both sides."
nearshoringnoun
NEER-shor-ing
Relocating business operations to a nearby country rather than a distant one — balancing cost savings with reduced supply chain risk.
"European companies are nearshoring production to Eastern Europe to reduce supply chain vulnerability."
dumpingnoun
DUM-ping
Selling goods in a foreign market below their production cost, undercutting local competitors — generally considered an unfair trade practice.
"China was accused of dumping steel in European markets at prices domestic producers could not match."
foreign direct investmentnoun phrase
FOR-en deh-REKT in-VEST-ment
Investment by a company or government in business assets in another country — factories, offices, acquisitions. Abbreviated FDI.
"Foreign direct investment in Vietnam surged as companies moved factories out of China."
balance of paymentsnoun phrase
BAL-uns uv PAY-ments
A comprehensive record of all financial transactions between a country and the rest of the world — trade, investment, and transfers.
"A persistent balance of payments deficit can signal a country is living beyond its means internationally."
reshoringnoun
REE-shor-ing
Bringing manufacturing or operations back to the home country after previously outsourcing them abroad.
"Concerns about supply chain security prompted US companies to reshore semiconductor production."
currency manipulationnoun phrase
KUR-en-see muh-nip-yoo-LAY-shun
Government intervention to keep a currency artificially weak, making exports cheaper and imports more expensive — a trade advantage by monetary means.
"The US Treasury can formally designate countries as currency manipulators — a serious diplomatic accusation."