TariffA tariff, or import tax, is a duty imposed by a national government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods or raw materials and is paid by the exporter. Besides being a source of revenue, import duties can also be a form of regulation of foreign trade and policy that burden foreign products to encourage or safeguard domestic industry.
Comparative advantageComparative advantage is an economic principle that explains why people, firms, and countries can often benefit from trade even when one party is more productive at producing every good or service. The principle states that greater gains from trade arise when each participant devotes a larger share of its labor and other productive resources to the activities with the lowest opportunity cost and obtains other goods and services through trade.
TradeTrade is the act by which people swap something of value (such as products, resources, money) to obtain another valuable item. It involves the transfer of goods and services from one person or entity (seller) to another (buyer), often in exchange for money.
ExportAn export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an exporter; the foreign buyer is an importer. Services that figure in international trade include financial, accounting and other professional services, tourism, education as well as intellectual property rights.
EconomicsSocial science studying goods and servicesEuro coinsEconomics () is a social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as the basic elements of economies, including individual agents and markets, their interactions, and the outcomes of those interactions.DevaluationIn macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket. The opposite of devaluation, a change in the exchange rate making the domestic currency more expensive, is called a revaluation.
East AsiaEast Asia is a geocultural region of Asia. It includes China, Japan, Mongolia, North Korea, South Korea, and Taiwan, plus two special administrative regions of China: Hong Kong and Macau. The economies of China, Japan, South Korea, and Taiwan are among the world's largest, fastest-growing, and most prosperous. East Asia borders North Asia to the north, Southeast Asia to the south, South Asia to the southwest, and Central Asia to the west. To its east is the Pacific Ocean.CurrencyA currency is a standardized form of money, in use or circulation as a medium of exchange, for example banknotes, coins, electronic balances in online bank accounts, and central bank digital currencies (CBDCs). A more general definition is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state.
ImportImport is the activity within international trade which involves buying and receiving goods and services produced in another country. An importer is a person, organization or country receiving imported goods which have been exported from another country. Importation and exportation are the defining financial transactions of international trade. The seller of such goods and services is called an exporter.
PolicyPolicy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organization. Policies can assist in both subjective and objectivedecision making.
IndustrialisationIndustrialisation (UK) orindustrialization (US) is "the period of social and economic change that transforms a human group from an agrarian and feudal society into an industrial society. This involves an extensive reorganisation of an economy for the purpose of manufacturing." Industrialisation is associated with an increase in polluting industries heavily dependent on fossil fuels.
Fixed exchange rate systemExchange rate regime where a currency's value is fixed against another value Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange-rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Dual exchange rate List of countries by foreign exchange reserves Markets Foreign exchange market Futures exchange Retail foreign exchange trading Assets Currency Currency future Currency forward Non-deliverable forward Foreign exchange swap Cross-currency swap Foreign exchange option Historical agreements Bretton Woods Conference Smithsonian Agreement Plaza Accord Louvre Accord See also Bureau de change Hard currency Currency pair Foreign exchange fraud Currency intervention vte A fixed exchange rate, often called a pegged exchange rate or pegging, is a type of exchange rate regime in which a currency's value is fixed, or pegged, by a monetary authority against the value of another currency, a basket of other currencies, or another measure of value, such as gold or silver.*As an Amazon Associate I earn from qualifying purchases.