International Trade
By: Cavel Hines
Teacher: Mr. Brown
Subject: Economics
Meet My Team!
contents
Balance of Trade,
Current Account ,
Capital Account
Net International
Reserves, Balance of
Payments, Balance of
Payments Disequilibria
Tariff, Common External
Tariff, Quota, Exchange
Rate
Exchange Rate Regimes,
World Trade
Organization
Definitions
1.Balance of Trade: The balance between
the value of a country’s exports and
imports of goods.
• Positive: Trade surplus
• Negative: Trade deficit
2.Current Account: Records a nations
transactions with the rest of the world,
including trade in goods and services,
income, and current transfers.
3.Capital Account: Tracks the flow of
financial investments, such as stocks,
bonds, and loans between countries.
Definitions
4.Net International Reserves (NIR): A
country’s reserves of foreign currencies
and gold, held by its central bank, used
to manage its currency and settle
international debts.
5.Balance of Payments (BOP): A country’s
reserves of foreign currencies and gold,
held by its central bank, used to manage
its currency and settle international
debts.
6.Balance of Payment Disequilibria: When a
country’s payments to and receipts from
the rest of the world are not balanced.
Definitions
7.Tariff: A tax imposed on imported
goods to protect domestic industries or
raise revenue.
8.Common External Tariff (CET): A
uniform tariff imposed by a group of
countries on imports from non-member
countries.
9.QUOTA (NON-TARIFF BARRIERS): A limit
on the quantity of goods that can be
imported or exported.
10: Exchange Rate: The value of one
currency in terms of another.
Exchange
Rate
Regimes
World Trade
Organization
Exchange
Rate
Regimes:
World Trade
Organization
(WTO):
Systems by which a country
manages its currency in
relation to other currencies,
e.g., fixed, floating, or
pegged.
An international
organization that
regulates trade between
nations to ensure smooth
and fair trade practices.
Thank You Everyone!