Diplomacy & Politics Glossary

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

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.

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.

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.

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.