Quotas
A quota is a government-imposed restriction on the quantity of a particular good that can be imported or exported.
International Trade
International trade is the exchange of goods and services between nations. These are known as imports, where the country pays another for its goods and services. And there are exports, where the country sells its goods and services.
Net Exports
Net exports represent the difference between a country’s total exports and imports of goods and services, reflecting its trade surplus or deficit and influencing economic growth and currency exchange rates.
Autarky Definition and Examples
Autarky is a self-sufficient economic state without international trade, but can limit growth due to higher costs, limited access to foreign goods, and lack of competition.
What Role Does Competition Play in International Trade
Competition plays a key role in promoting innovation, efficiency, and lower prices in international trade, benefitting both consumers and firms.
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Embargo Definition and Examples
An embargo is a government-imposed restriction on trade or economic activity with a specific country or group of countries.
Comparative Advantage: Definition, How to Calculate & Examples
When one nation is more efficient at producing a good than another. However,
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Protectionism: Definition, Advantages & Disadvantages
Protectionism is whereby nations aim to prevent or restrict the supply of goods coming into the country.
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Absolute Advantage: Definition & Example
When a nation is more efficient making a good over another, it has an absolute advantage.
Barriers to Entry: Definition, Examples & Types
A barrier to entry is simply an obstacle that new businesses face when entering the market. This can come in the form of high start-up costs, or strong branded competitors.
The Importance of Free Trade
True free markets don’t exist anywhere in the world. This is because free markets and free trade go hand in hand. There exists no country that has free trade with every other. Although Hong Kong doesn’t operate a tariff regime, it is unable to export its products and services to others free of tariffs. Free market ideologies such as neoliberalism are attacked and concluded that they have failed.