What's it: Trade sanction is formal penalties for stopping or reducing the purchase or sale of goods to a country. The sanctioner may be a country with a strong economy such as the United States or several countries together or through
International Trade
Terms of Trade: Meaning, How to Calculate, Impacts
What's it: Terms of trade (TOT) is the ratio between export prices and import prices. Because international trade involves various goods and services, economists compute them using a price index to represent the average price of exported
Trade Balance: Formula, Calculation, Impacts, and Affecting Factors
What's it: Trade balance is the difference between the country's export value and its import over a certain period. When exports' value exceeds imports, the country runs a positive trade balance (trade surplus). Meanwhile, if the value
Trade Surplus: How to Calculate, Affecting Factors, Pros, Cons
What's it: A trade surplus is when the value of a country's exports exceeds its imports. Or in other words, the country reports a positive trade balance. Since international trade involves two different currencies for payment, a surplus
Trade Restriction: Reasons, Types, and Impacts
What's is: Trade restriction refers to the various barriers that make the flow of goods and services between countries immobile. If the barriers come from government policies, we call it trade protection. Trade restrictions affect
International Trade: Why It Matters, Advantages, Disadvantages
What's it: International trade refers to trade of goods and services across countries. It consists of exports and imports. Export means you sell domestic goods and services to consumers abroad. Conversely, imports are when you buy goods and
Trade Barriers: Types, and Arguments
A trade barrier is any obstacle that limits the movement of trade flows between countries. Generally, the purpose of this measure is to protect the domestic economy. There are various kinds of trade barriers, including tariffs, quotas,
Trade Deficit: Formula, Causes, Impacts
What's is: A trade deficit occurs when the value of a country's exports is less than its imports. To finance the deficit, the country has to borrow from foreigners or sell assets (through investment inflows in the capital market, for
Export: Meaning, Importance, How to Do
Export means selling goods and services abroad. It usually requires coordination between four players, namely exporters, importers, export intermediaries, and the government. It can be direct, namely through international marketing