International Trade — Glossary

A situation where a country can produce a good or service more efficiently than another country, using fewer resources.

An economic principle stating that countries benefit by specializing in producing goods where they have a lower opportunity cost than others, enabling efficient trade.

An economic and political theory that explains global inequality as a result of historical exploitation and structural dependence of developing countries on developed ones.

A set of proposals by developing countries in the 1970s to promote their interests through reforming global economic relations.

The responsiveness of the quantity supplied of a good to changes in its price in international markets.

A legal process resolving trade disputes between member countries to enforce WTO agreements.

Trade agreements within the WTO [Framework](https://modeldiplomat.com/learn/glossary/framework) that involve only some member countries rather than all members.

These negotiations involve member states agreeing on [Tariff](https://modeldiplomat.com/learn/glossary/tariff) reductions to promote free and fair international trade.

Agreement aiming to simplify and expedite customs procedures to boost international trade efficiency.

Trade agreements among a subset of WTO members that do not require [Consensus](https://modeldiplomat.com/learn/glossary/consensus) of all members but operate under the WTO framework.