Saturday, February 27, 2016

Important Terms and Definitions

Commodity: an article of trade or commerce, especially a product as distinguished from a service; something of use, advantage, or value; any unprocessed or partially processed good, as grain, fruits, and vegetables, or precious metals.

Resource: a source of supply, support, or aid, especially one that can be readily drawn upon when needed; the collective wealth of a country or its means of producing wealth; money, or any property that can be converted into money; assets.

Trade: the act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries

Trade Balance: is the difference between a country's imports and its exports.
Balance of trade is the largest component of a country's balance of payments.
Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad.
Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy.
A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus.
(http://www.investopedia.com/terms/b/bot.asp)

Definitions from: http://dictionary.reference.com/

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