Economics & Trade Glossary

Measures taken to protect domestic industries from foreign companies selling products below cost to gain market share.

An anti-dumping duty is a tariff imposed on imports priced below fair market value to protect domestic industries from unfair competition.

Trade defense tools used to protect domestic industries from foreign companies selling products below market value.

A record of all economic transactions between residents of a country and the rest of the world over a period.

The IMF and World Bank created to promote international monetary cooperation and economic development.

The capital account records cross-border transfers of ownership of assets, including investments, loans, and banking flows.

The net flow of capital transactions, including investments and loans, into and out of a country within the balance of payments framework.

The process of removing restrictions on capital flows into and out of a country to encourage investment and financial integration.

A measure of a bank's capital relative to its risk-weighted assets to ensure financial stability.

Government measures to regulate cross-border capital movements to stabilize the economy.

Rapid movement of large sums of money out of a country due to economic or political instability, often harming the domestic economy.

The degree of fluctuation in cross-border financial investments and loans over a short period, affecting economic stability.

When strict climate policies cause emissions to shift to countries with looser regulations.

A market-based approach to reducing greenhouse gas emissions by assigning a cost to emitting carbon dioxide.

Additional capital banks must hold during economic expansions to protect the financial system during downturns.

Government spending and taxation policies designed to counteract economic fluctuations and stabilize growth.

Monetary actions aimed at stabilizing the economy by increasing money supply during recessions and decreasing it during booms.

Additional tariffs imposed to offset subsidies provided by foreign governments to their exporters, aiming to level the playing field.

A tariff imposed to offset subsidies provided by foreign governments to their exporters.

Trade policy actions, such as tariffs, imposed to offset subsidies provided by foreign governments to their exporters.

An agreement between two parties to exchange principal and interest payments in different currencies over a set period.

Measures that reduce or restructure the debt burden of developing countries to improve repayment capacity.

An assessment of a country’s ability to service its debt without external assistance or default.

An analytical tool used by international organizations to assess a country's ability to manage its external debt without defaulting.

A financial arrangement where a country's external debt is exchanged for equity stakes in domestic companies.

An agreement where a portion of a country's debt is forgiven in exchange for commitments to environmental conservation.

The WTO entity responsible for resolving trade disputes between member countries.

Economic harm caused when resource exports lead to currency appreciation, reducing competitiveness of other sectors.

A weighted average exchange rate of a country's currency against a basket of other currencies, reflecting trade importance.

The weighted average exchange rate of a country's currency against a basket of other currencies, reflecting trade patterns and currency values.

Measures the percentage increase in value added per unit of output due to tariffs on inputs and final goods, showing the true level of protection domestic industries receive.

The tariff rate that actually affects the cost of imported goods after considering the entire production process and inputs. It measures the real protection given to domestic industries by tariffs.

The global shift from fossil fuels to renewable energy sources to reduce environmental impact.

Illegal methods used to avoid tariffs, quotas, or sanctions, such as mislabeling goods or smuggling.

The price of one country's currency expressed in terms of another's, affecting trade and investment flows.

A weighted average of several currencies used by a country to stabilize its own currency's value.

The extent to which changes in exchange rates affect domestic prices of imported and exported goods.

A fixed exchange rate system where a country’s currency value is tied to another currency or basket of currencies.

The system a country uses to manage its currency in relation to other currencies, such as fixed, floating, or pegged.

The degree of fluctuation in a currency's value against others over time.

A government or quasi-government institution that provides financing and insurance to support domestic companies' exports.

The process by which a country increases the variety of products and markets in its export portfolio to reduce economic vulnerability.

Government financial support to domestic producers to make their exports more competitive internationally.

An economic strategy that emphasizes expanding exports to drive national economic development and increase GDP.

The spread of financial instability from one country or market to others due to interconnected financial systems.

Restrictions on financial transactions imposed on countries or entities to influence their policies.

The ratio of a change in national income to the change in government spending that caused it, indicating fiscal policy effectiveness.

The process where governments align their fiscal policies to achieve common economic objectives and avoid negative spillovers.

The ratio measuring the change in economic output resulting from a change in government spending or taxation.

The capacity of a government to provide additional budgetary resources without compromising fiscal sustainability.

A statistical measure of income or wealth inequality within a population, ranging from 0 to 1.

The total market value of all final goods and services produced within a country in a given period.

Government authorization required to bring certain goods into a country, often used as a trade barrier.

The percentage of domestic consumption satisfied by imports, indicating trade openness.

A government-imposed limit on the quantity or value of a specific good that can be imported during a given period.

An economic policy aimed at reducing foreign dependency by encouraging domestic production of goods previously imported.

An economic strategy that promotes domestic production of goods to replace imports and foster industrial growth.

A tax imposed by a government on goods brought into the country to protect domestic industries and generate revenue.

The justification for protecting new industries until they become competitive against established foreign firms.

Trade policy measures that temporarily shield new domestic industries from international competition to help them grow.

The percentage increase in the general price level of goods and services over a period, reducing purchasing power.

An international organization providing financial support and advice to countries facing balance of payments problems.

The concept that changes in the money supply only affect nominal variables like prices, not real variables like output or employment, in the long run.

Central bank actions controlling money supply and interest rates to manage inflation and economic growth.

Central bank actions to offset the impact of foreign exchange interventions on the domestic money supply.

The process through which changes in monetary policy influence economic variables like inflation and output.

The process through which changes in monetary policy affect the economy, including interest rates, investment, and inflation.

Central bank actions to offset foreign exchange interventions to maintain monetary policy targets.

A group of countries that adopt a single currency and coordinate monetary policy.

Specific cases in trade agreements where the Most-Favored-Nation principle does not apply, allowing preferential treatment.

The most favored nation principle requires WTO members to treat all other members equally regarding trade tariffs and regulations without discrimination.

An index measuring a currency’s value relative to a weighted average of several foreign currencies without adjusting for price differences.

Regulatory or procedural restrictions that countries use to limit imports without applying tariffs, such as quotas or licensing requirements.

Policies and regulations other than tariffs that can restrict or promote trade, such as quotas, standards, licensing, and subsidies. They often have significant trade impact.

Government aid designed to promote economic development and welfare in developing countries.

An organization of oil-exporting countries coordinating petroleum policies to influence global oil markets.

A nation whose economy heavily depends on the export of crude oil and petroleum products.

A country whose economy is heavily dependent on the export of oil and petroleum products.

A self-reinforcing mechanism that causes poverty to persist over time, making it difficult for individuals to escape without external help.

A treaty between countries that reduces tariffs for certain products to promote trade among the signatories.

A limit on the quantity or value of goods that can be imported or exported during a specified period.

The method by which import or export quotas are distributed among countries or companies.

The economic profit earned by holders of import licenses when a quota limits supply and raises prices.

A treaty between two or more countries in a specific region to reduce trade barriers and increase economic integration.

A temporary measure allowing countries to restrict imports of a product to protect domestic industries from serious injury caused by a surge in imports. It is regulated under WTO rules.

A temporary tariff imposed to protect domestic industries from a sudden surge in imports causing or threatening serious injury.

Temporary trade restrictions imposed to protect domestic industries from sudden surges in imports causing serious injury.

Temporary trade barriers imposed to protect domestic industries from sudden surges in imports causing serious injury.

Penalties applied to third-party entities or countries that do business with a sanctioned country, extending the reach of sanctions.

Programs designed to reduce poverty and vulnerability by providing income support and services.

A set of basic social security guarantees ensuring access to essential health care and income security.

Programs designed to provide basic support for vulnerable populations against economic shocks.

Provisions in WTO agreements granting developing countries flexibilities and longer timeframes to implement commitments.

Economic policies imposed by international financial institutions on developing countries to promote market liberalization and fiscal discipline.

Economic policies imposed by international financial institutions requiring developing countries to implement reforms in exchange for loans.

The reallocation of economic activity from agriculture to industry and services during development.

Long-term unemployment caused by changes in the economy that make certain skills obsolete or industries decline.

Financial assistance provided by governments to domestic industries to make their products more competitive internationally.

A global messaging network facilitating secure financial transactions among banks worldwide.

A tax imposed on imported goods to protect domestic industries or raise government revenue.

The ratio of export prices to import prices, indicating how many imports a country can buy per unit of exports.

Measures the ratio of export prices to import prices, indicating the purchasing power of a country's exports.

Government programs that support workers and industries negatively affected by trade liberalization through retraining and financial aid.

The difference between the monetary value of a country's exports and imports over a period.

A measure of how well the export profile of one country matches the import profile of another, facilitating bilateral trade.

Quantifies how well the export profile of one country matches the import profile of another, indicating potential for beneficial trade relations.

The increase in trade resulting from the reduction of trade barriers between member countries of a trade agreement.

Increase in trade efficiency and welfare when a trade agreement causes imports from more efficient producers.

The WTO entity responsible for resolving trade disagreements between member countries through established legal procedures.

The process of expanding the variety of products and markets in a country’s trade portfolio to reduce dependency risks.

Occurs when trade shifts from a more efficient exporter to a less efficient one due to the formation of a trade agreement.

Occurs when trade shifts from a more efficient exporter to a less efficient one due to a new trade agreement.

A measure of how sensitive the quantity of traded goods is to changes in trade costs or prices.

The responsiveness of quantity demanded of traded goods to changes in their prices internationally.

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

Measures that simplify and streamline international trade procedures to reduce costs and delays at borders.

A WTO agreement aiming to expedite the movement, release, and clearance of goods across borders by simplifying customs procedures.

Expenses associated with complying with trade procedures, including documentation, inspections, and delays at borders.

A composite measure evaluating countries on customs efficiency, infrastructure quality, and regulatory environment for trade.

Policies and procedures that simplify and expedite the movement, release, and clearance of goods across borders to reduce trade costs and delays.

An international treaty aimed at liberalizing trade and investment in services sectors among participating countries.

An approach to measuring trade by accounting for the value added at each stage of production across countries rather than gross export values.

The removal or reduction of trade barriers to encourage freer international exchange of goods and services.

Trade liberalization effects describe changes in economic growth, employment, and income distribution following tariff reductions.

Negotiation sessions under the GATT/WTO framework where multiple countries discuss and agree on reducing trade barriers.

Trade war occurs when countries impose retaliatory tariffs or barriers to restrict imports and protect domestic industries.

WTO agreement setting minimum standards for protecting intellectual property across member countries.

Policies that regulate foreign investment linked to trade, such as local content requirements or export performance rules.

A WTO agreement setting rules on investment measures that affect trade in goods among member countries.

Trade or financial penalties imposed by one country independently to influence another nation's policies.

A government program providing all citizens with a regular, unconditional sum of money to ensure a basic standard of living.

An agreement where exporting countries limit the quantity of goods exported to another country voluntarily.

An international institution that offers loans and development assistance to reduce poverty and support development projects.

An international institution that regulates and facilitates global trade agreements and dispute resolution.

The WTO entity responsible for resolving trade disputes between member countries.