TRADE
The exchange of goods and services, usually for money.
INTERNATIONAL TRADE
The movement and exchange of physical goods such as materials, component parts, equipment and finished products as well as services, ideas, capital, currencies and labour across international borders.
VISIBLE TRADE
The movement and exchange of physical exports and imports across national borders.
GAINS FROM TRADE
Economic benefits associated with international specialization and trade.
TRADE SURPLUS
This occurs when the value of visible exports from a country exceeds the value of visible imports to that country during the same period.
TRADE DEFICIT
This occurs when the value of visible imports to a country exceeds the value of visible exports it sells overseas during the same period.
BALANCE OF TRADE
The difference between the value of visible exports from a country and the value of visible imports to that country, usually measures per month and annually.
FAVOURABLE TRADE BALANCE
The term used to describe a situation in which a country has recorded more credits from the sale of visible exports overseas than debits for the purchase of visible imports from overseas suppliers in its record of international transactions.
BALANCE OF PAYMENTS
An accounting record of all monetary transactions between a country and the rest of the world.
BALANCE OF PAYMENTS ON CURRENT ACCOUNT
This section of the balance of payments of a country is used to record and monitor how well or how badly it is performing in international trade in goods and services, and other flows of incomes and transfers with other countries.
TRADE BARRIERS
Government measures, such as tariffs and quotas, designed to restrict international trade and competition.
NON-TARIFF TRADE BARRIERS
A term used to describe subsidies, quotas, embargoes, licensing regulations, arbitrary standards and all other non-tax trade restrictions.
TRADE LIBERALIZATION
The removal of or reduction in trade barriers between countries.
QUOTA
A restriction on the volume of an imported good allowed into a country.
SOLE TRADER
Also known as a sole proprietorship, a sole trader is a business organization owned and usually controlled by one person.
TRADE UNION
Also known as a labour union, a trade union is an association representing employees in a particular workplace or industry with the aim of improving their pay and working conditions through negotiations with employers.
GENERAL UNION
A type of trade union with members drawn from many different industries and occupations.
SINGLE UNION AGREEMENT
An agreement between an employer and trade unions that one union can represent all workers at a particular workplace. The arrangement saves time negotiating with only one union and avoids disagreements arising between different unions.
CARTEL
A formal agreement between a group of powerful producers to control the market supply and price of their product. OPEC (the Organization of the Petroleum Exporting Countries) is one of the most widely known examples of a cartel.
STOCK MARKET
The global market for new and secondhand stocks (shares and bonds).
STOCK EXCHANGE
An organization that brings together buyers and sellers of company shares and government bonds.
FOREIGN EXCHANGE MARKET
The global market for the exchange of national currencies.
STOCK MARKET FLOTATION
The first issue and sale of shares in a newly created public limited company through a stock exchange.
JOINT-STOCK COMPANY
A business organization owned jointly by its shareholders. Also known as a limited company.
COMMON STOCK
Also known as ordinary shares or equity, common stock are shares issued by limited companies that allow their holders to vote on company directors and policy at annual general meetings.
PREFERRED STOCK
Preference shares issued by a limited company.
SHARE CAPITAL
Money raised by companies for investment from the sale of shares.
ORDINARY SHARES
Common stock with voting rights issued by a limited company.
BROKER
A share dealer, able to buy and sell shares on a stock exchange.
SHAREHOLDER
A person or organization that owns one or more shares in a joint-stock company.
BEAR
A stock market speculator who will buys shares in the hope they will quickly fall in value so they can buy them back at a lower price. A bear market refers to a situation in which the average prices of shares on the stock market is falling.
BULL
The name given to a stock market speculator who buys shares in the hope their price will rise quickly so they can sell them for a profit. A bull market refers to a situation in which the average prices of shares on the stock market is rising.
STAG
A stock market speculator who applies for new issues of shares in anticipation of a rise in price when stock market trading commences in order to make a quick profit on resale.
Aim Institute of Economics 