Glossary

A
Absolute advantage: Absolute advantage is the ability of a country, individual,
company or region to produce a good or service at a lower cost per unit than the
cost at which any other entity produces that same good or service. Entities with
absolute advantages can produce a product or service using a smaller number of
inputs and/or using a more efficient process than other entities producing the same
product or service.
Agriculture: Set of activities and knowledge developed by the man, destined to
cultivate the earth and whose purpose is to obtain vegetal products (like vegetables,
fruits, grains and grasses) for the feeding of the human being and the cattle.
Amount: Number of units, size or portion of a thing, especially when it is
undetermined.

B
Balance of Payments: Accounting document where all economic transactions
occurring over a period of time are recorded. It is subdivided into: trade balance
(import and export of goods), balance of services (income or payments for services
performed), balance of transfers (operations that do not involve counterpart) and
balance of capital.
Balance of Trade: Balance of Payments Branch, which reflects the exports and
imports of goods between a country and the rest of the world over a given period of
time. The balance equals export earnings less import payments (trade coverage).
Barriers: Customs duties levied on imports of goods from foreign countries.
Buy: action of obtaining or acquiring, a change of a certain price, a product or a
service.

D
Cheaply: That it has a low price in relation to other similar goods.
Comparative Advantage: is the ability of a person, the company or the country to
produce a good. It is one of the basic foundations of trade between countries,
assuming as decisive costs relative to production, not absolute ones.
Cost: is the economic expense that represents the manufacture of a product or the
provision of a service.

D
Deficit: Balance in favor of a country's imports relative to its exports for a given
period of time. In the Spanish balance the trade deficit is chronic.
Dumping: In foreign trade, it is used to indicate the sale of goods at a price lower
than those in the domestic market, for identical goods, in the same circumstances
and at the same time of sale. It can be a voluntary action to discard surplus stocks
or to counteract competing actions. Countries adopt antidumping measures
through the application of taxes and duties.

E
Economists: is that person who studies and analyzes both the causes and
consequences of economic phenomena involving costs and benefits, through
which structures, interprets and elaborates models and laws.
Encourage: Intensify or stimulate a thing, especially a feeling, an attitude or an
activity.
Exports: Rgime aduanero que permite la salida legal de bienes y servicios de
origen nacional.

F
Free Trade: Form of economic integration that eliminates all tariff barriers to trade
in goods among member countries.
Frontiers: is the strip of territory of the nations located around the international
borders of the same, ie the border marks the separation of the neighboring
countries to which I belong.

G
Goods and Services: goods and services are the result of human efforts to meet
the needs and desires of people. Economic production is divided into physical
goods and intangible services.
Governments: is the principal pillar of the State, the authority that directs, the
control and administration of the institutions, the quality of the general political
conduct or the exercise of the executive power of the State.

I
Imports: Customs regime that allows the legal entry to consumption of a good or
service of foreign origin.
Income:
Input:
Instead:
Invisible:
 J
Jobs:

L
Labour: It is known as labor to the physical and mental effort that is put
at the service of the manufacture of a good.
P
Payments:
Produce:
Production:
Productivity:
Partners:
Protectionism: Doctrine or system of national economic policy facing the outside
through the imposition of levies on the importation of foreign goods and services.
All countries have commercial practices in place to protect their markets.

Q
Quota:

R
Raw Material: Unprocessed material, used for the production of a good. The
productive processes alter their original structure.

S
Standards: is a process, protocol or technique used to do something concrete.
Surplus: Situation of the economy where income is greater than expenditure.

T
Trade: socio-economic activity consisting of the exchange of some materials that
are free in the market for the purchase and sale of goods and services, for their
use, for sale or transformation.

V
Visible:

W
WTO: World Trade Organization.