Trade
The buying and selling of goods and services that occurs between countries
International Trade
the division of the economy into two distinct and radically different sectors, one technologically advanced and the other technologically retarded.
Economic dualism
An acronym for Caribbean Community and Common Market. Was formed in attempt to solve some of the region’s development problems
CARICOM
Involves the exchange of goods and services without the use of currency.
Countertrade
Goods and services that are produced in one country and sold to buyers in another.
Exports
Name the 2 economic sectors of dualism
1. advanced or modern sector
2. retarded or traditional sector
Main objective was the freeing of trade among participating countries
CARIFTA (1968) - Carribean Free Trade Association
Straightforward exchange of goods and services between contracting parties. Example: Juan trades a fish to Miguel for an egg in return.
Barter
a good or service bought in one country that was produced in another.
import
The wages are usually much higher in which sector?
advanced or modern sector
Has the function of ensuring the promotion of the industrial development of the less developed countries (LDCs).
CIC - Caribbean Investment Corporation
Seller agrees to give a portion of his payment in cash and the balance in the product produced by that equipment. Example: “A” leases land to “B” to grow tomatoes, “B” then being paid in tomatoes
Compensation (Buy back)
When a country can produce a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than other producers.
Absolute advantage
refers to the number of people working less than a normal working week and seeking additional work and people doing a job which is below their ability level.
under-employment
Who is the world's biggest exporter of manufactured goods and services, and the biggest import market for over 100 countries?
The European Union (EU)
One party agrees to sell goods to another and the other agrees to purchase goods from the first party
Counter-purchase
A record of financial transactions between one country and its trading partners, usually recorded over one calendar year
The balance of payment
It is the drift of people from the rural areas into the towns.
Urban drift/ rural migration
What trade agreement between USA, Canada, and Mexico created the world’s largest free trade area?
The North American Free Trade Agreement (NAFTA)
Trade is based on the multilateral use of bilateral currencies.
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