GLOBAL TRADE GLOSARY

TABLE OF CONTENTS

1.AGREEMENTS………………………………………………………………………3

2. ECONOMY……………………………………………………………………………4

3. GENERAL TERMS………………………………………………………………...6

4. GLOBALIZATION………………………………………………………………….8

5. GROWTH……………………………………………………………………………...9

6. INTERNATIONAL COMMERCE………………………………………………11

7. INTERNATIONAL ORGANIZATIONS……………………………………...12

8. POLITICAL SYSTEMS…………………………………………………………….13

9. TRADE………………………………………………………………………………….14

10.BIBLIOGRAPHY……………………………………………………………………14

• AGREEMENTS

AFTA: Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.

APEC: An association dedicated to the trade, cooperation, and economic growth of nations along the Pacific. The Asia-Pacific Economic Cooperation (APEC) works to remove trade tariffs and other obstacles to trade in the area. The organization was established in 1989, and 21 nations are members. The APEC's headquarters are in Singapore. The countries involved are Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, China; Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, The Republic of the Philippines, The Russian Federation, Singapore, Chinese Taipei, Thailand, United States of America, and Viet Nam.

GATT: General Agreement on Tariffs and Trade, which has been superseded as an international organization by the WTO. An updated General Agreement is now the WTO agreement governing trade in goods. GATT 1947: The official legal term for the old (pre-1994) version of the GATT. GATT 1994: The official legal term for new version of the General Agreement, incorporated into the WTO, and including GATT 1947.

G7: Group of seven leading industrial countries: Canada, France, Germany, Italy, Japan, United Kingdom, United States.

G8: G7 plus Russia. The Group of Eight (G-8) is a forum for the governments of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States. In addition, the European Union is represented within the G-8, but cannot host or chair the meetings. Collectively, the G8 nations account for approximately half of global GDP. Countries from the ‘Outreach Five’ (Brazil, People’s Republic of China, India, Mexico, and South Africa) have participated as guests in meetings, which are sometimes called G8+5.

At their Pittsburgh summit meeting in 2009, the G-20 (see above) announced that they would become the new permanent council for international economic cooperation. The G-8 will continue to meet to discuss major security issues.

G15: Group of 15 developing countries acting as the main political organ for the Non-Aligned Movement.

G20: The Group of Twenty (G-20) Finance Ministers and Central Bank Governors was established to bring together leading industrialized and developing economies to discuss key global economic issues. The G-20 represent 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, United Kingdom, United States and Turkey) and the European Union. Their heads of government or heads of state have also periodically conferred at summits. Together, the G-20 economies are estimated to account for more than 80% of global gross national product (GNP),80% of world trade and 66% of the world population.

MERCOSUR: Mercado Común del Sur. Customs union of four Southern-cone countries (Argentina, Brazil, Paraguay, and Uruguay) established under the 1991 Treaty Of Asunción. Formed on the pattern of European Community's Treaty Of Rome, it allows duty free inter-Mercosur trade and levies a common external-tariff (0 to 20 percent) on non-member countries. In 1996, Bolivia and Chile joined it as its associate members. Called Mercosul in Brazil.

NAFTA: Trilateral treaty among Canada, Mexico, and the US, established in 1994 to remove import duties (tariffs) and non-tariff barriers within ten years for most types of goods, and within five more years for others. While the total consumer population (370 million) of NAFTA is slightly smaller than that of European Union (EU), its combined output ($6 trillion) is 20 percent higher. This agreement also addresses concerns relating to environment, health, and natural resources.

PARIS DECLARATION: The Paris Declaration is an international agreement in which over 100 countries and organisations committed to continue to increase efforts in harmonisation, alignment and managing aid for results with a set of monitorable actions and indicators.

SERVICE DELIVERY AGREEMENT: A document which defines the outputs and subsidiary targets which will contribute towards delivery of the targets in the Public Service Agreement.

• ECONOMY

COMPETITION: Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply.

CONSUMPTION: The process in which the substance of a thing is completely destroyed, used up, or incorporated or transformed into something else.

CRISIS: Critical event or point of decision which, if not handled in an appropriate and timely manner (or if not handled at all), may turn into a disaster or catastrophe.

CURRENCY CRISIS: A situation in which the value of a currency becomes unstable, making it difficult for the currency to be used as a reliable medium of exchange. The effect of a currency crisis can be mitigated by sufficient foreign reserves. A currency crisis is a type of financial crisis.

DEMAND: Desire for certain good or service supported by the capacity to purchase it.

DIVISION OF LABOR: Narrow specialization of tasks within a production process so that each worker can become a specialist in doing one thing, especially on an assembly line. In traditional industries (see sunset industries), division of labor is a major motive force for economic-growth. However, in the era of mass customization (which requires multiple skills and very short machine change-over time), division of labor has become much more flexible. Also called specialization of labor.

ECONOMIC CRISIS: A situation in which the economy of a country experiences a sudden downturn brought on by a financial crisis. An economy facing an economic crisis will most likely experience a falling GDP, a drying up of liquidity and rising/falling prices due to inflation/deflation. An economic crisis can take the form of a recession or a depression.

INVESTMENT: Money committed or property acquired for future income.

MARKET: An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

MONETARY THEORY: A set of ideas for how a nation should manage currency.

OPPORTUNITY COST: A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost.

PRODUCTION: The processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Resources are used in this process to create an output that is suitable for use or has exchange value.

Consumption of goods and services is the amount of them used in a particular time period.

SCARCITY: Ever-present situation in all markets whereby either less goods are available than the demand for them, or only too little money is available to their potential buyers for making the purchase.

SUPPLY: The total amount of a product (good or service) available for purchase at any specified price.

SPECIALIZATION: An agreement within a community, group, or organization under which the members most suited (by virtue of their natural aptitude, location, skill, or other qualification) for a specific activity or task assume greater responsibility for its execution or performance.

• GENERAL TERMS

ADAPTATION: Modification of a concept or object to make it applicable in situations different from originally anticipated.

Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.

CLIMATE CHANGE: a significant and lasting change in the statistical distribution of weather patterns over periods ranging

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