Skip to main content
Back

Exporting and Importing definitions

Control buttons has been changed to "navigation" mode.
1/14
  • Autarky
    A situation where a country relies solely on its own supply and demand, with no international trade.
  • Domestic Supply
    The total quantity of a good produced within a country, regardless of international trade.
  • Domestic Demand
    The total quantity of a good desired by consumers within a country, independent of foreign markets.
  • World Price
    The prevailing price of a good on the global market, which determines trade flows when a country opens to trade.
  • Domestic Price
    The equilibrium price of a good within a country when no international trade occurs.
  • Consumer Surplus
    The area above the price and below the demand curve, representing consumer gains from market transactions.
  • Producer Surplus
    The area below the price and above the supply curve, indicating producer gains from selling goods.
  • Exports
    Goods produced domestically and sold to buyers in other countries, often when world price exceeds domestic price.
  • Imports
    Goods produced abroad and purchased by domestic consumers, typically when world price is below domestic price.
  • Comparative Advantage
    The ability of a country to produce a good at a lower opportunity cost than others, driving specialization and trade.
  • Equilibrium
    The point where domestic supply equals domestic demand, setting the market price and quantity without trade.
  • National Surplus
    The combined gains of consumers and producers in a country, which can increase with international trade.
  • Quantity Supplied
    The amount of a good that domestic producers are willing to sell at a given price.
  • Quantity Demanded
    The amount of a good that domestic consumers are willing to buy at a given price.