Global Trade System

Definition

The global trade system refers to the network of economic transactions and interactions that occur between countries, involving the exchange of goods, services, and capital on a global scale. It includes international trade agreements, tariffs, import/export regulations, and financial flows.

Related terms

Tariffs: Taxes or duties imposed on imported goods by governments to protect domestic industries or raise revenue.

Comparative Advantage: The ability of a country to produce a particular good or service more efficiently compared to other countries.

Trade Deficit: When the value of a country's imports exceeds its exports over a given period, resulting in negative net exports.