Glossary

Absolute advantage: the ability of an individual or region to produce goods and services more efficiently.
Comparative advantage: the ability of an individual or region to produce goods and services at a lower cost.
Exports: products produced in a domestic market and sold in a foreign market; products and services flowing out of a region.
Free trade: trade between countries that is free of tariffs, duties and taxes, and other non-tariff barriers.
Gains from trade: the net increase in welfare that accrues to producers or consumers depending on whether the country is importing or exporting.
Imports: products produced in a foreign market and sold in a domestic market; products and services flowing into a region.
Lobby groups: groups or individuals that intend to sway policy decisions in their favour.
Non-tariff barriers: restrictive regulations that reduce trade that generally take the form of quotas, regulations, licences, etc.
Protectionism: actions taken by a country to protect domestic industries from competition from foreign goods.
Specialization: when an individual or country focuses production on a limited scope of products and services such that there are efficiency gains.
Tariffs: fees or duties imposed on imports or exports.
Trade: exchange of goods and services for currency or other goods and services.
Trade policy: rules and regulations surrounding the exchange in goods and services between regions.

References

Sorensen, C. (2016, November 4). Why looming trade troubles are bad news for Canada. Maclean’s. Retrieved from: http://www.macleans.ca/economy/why-looming-trade-troubles-are-bad-news-for-canada/

Radcliffe, B. (2015, December 28). The basics of tariffs and trade barriers. Investopedia. Retrieved from: http://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp