International trade

International trade is the exchange of goods and services across national borders. It links national economies through exports, imports, and cross-border production.

Comparative advantage: The ability to produce a good at lower opportunity cost than another producer. It explains how countries can gain from specialization even when one is more productive in every industry.
Terms of trade: The ratio of a country's export prices to its import prices. Changes in this ratio affect how much a country can buy with its exports.
Free trade: Trade across borders with few or no government-imposed barriers. It is the policy ideal most often contrasted with protectionist restrictions.
Silk Road: A network of land and sea routes connecting East Asia with Central Asia, the Middle East, and Europe. Its long-distance exchanges illustrate trade across political and cultural boundaries before modern states.
Customs union: A group of countries that removes internal tariffs and applies a common external tariff. It combines freer internal trade with a shared approach to imports from outside members.
Tariff: A tax imposed on imported or exported goods. Import tariffs raise the domestic cost of foreign goods and alter trade flows.
Trade and labor markets: The study of how international trade affects employment, wages, and worker mobility. Import competition and export growth can affect workers differently across industries.
Protectionism: Government policies that restrict imports or favor domestic producers over foreign competitors. It describes the broad policy approach opposite to trade liberalization.
Navigation Acts: English laws that regulated colonial trade and reserved much shipping for English vessels. They show how early modern states used trade rules to control colonial commerce.
Free-trade area: A group of countries that removes tariffs among members while retaining separate external trade policies. It is a common institutional form for regional trade agreements.

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