MYP Individuals & Societies Trade, Fairness and Global Exchange Key Definitions

A trade bloc that includes free trade among members, a common external trade policy, and free movement of goods, services, and people (and often capital) across borders.

A fall in the value of a currency in a floating exchange rate system, meaning it buys fewer units of foreign currency.

A good or service produced domestically and sold to buyers in another country, generating income for the exporting economy.

The amount earned when firms sell goods or services abroad.

An additional payment (on top of the product price) that is paid to a producer organization and used for community or business development projects chosen collectively.

An agreement in which member countries remove trade barriers to goods and services between themselves, while each country remains free to set its own trade policy with non-members.

The movement of goods, services, and financial payments between countries through imports, exports, and related money transfers.

A good or service bought from another country and consumed or used domestically, creating spending that leaves the domestic economy.

The amount spent when an economy buys goods or services from abroad.

The physical systems (like transport and communication) needed for an economy to function.

A percentage that has to be repaid in addition to the value of the loan, or the cost of borrowing.

Leakages are withdrawals of money from the circular flow of income, meaning income is not immediately spent within the economy.

An agreement in which countries reduce trade barriers (often tariffs) on certain goods for each other, giving members more favorable access than non-members.

A supply chain is the network of steps and organizations involved in producing and delivering a good, from raw materials to the final customer.

A formal arrangement between countries that sets rules for trade, such as tariffs, quotas, standards, or market access.

A set of rules, agreements, or organizations that shape how trade is conducted between countries, including how barriers are set or removed and how disputes are managed.