BALANCE OF PAYMENTS:
a system that records all of a country’s receipts from and payments to a foreign country during a given period of time

BALANCE OF TRADE :
the difference between a nation’s exports and imports over a given period

CAPITAL :
(1) the funds invested in a company on a long-term basis (2) a factor of production, specifically refer ring to all goods used to produce other goods and services.

COMMODITIES:
commonly, the trade in agricultural or mineral products on a commodity exchange.

COMPARATIVE ADVANTAGE:
The idea that a country will specialize in producing goods and services that can be produced most efficiently. For example, in producing some goods, a less-developed country has a comparative advantage in lower wage costs, which allows it to produce and trade some goods at less cost than developed countries.

CONSENSUS:
a method of making decisions that requires all participants to agree, or, to at least not strongly oppose, a decision.

CORPORATION:
A business organization that is treated as a single legal entity and is owned by its stockholders, whose liability is generally limited to the extent of their investment. The ownership of a corporation is represented by shares of stock that are issued to individuals, or to other companies, in exchange for cash, physical assets, services, and goodwill. The stockholders elect the board of directors, which is responsible for the overall management of the corporation’s affairs.

DUMPING : selling exports at unfairly low prices, usually to undercut domestic producers

ECONOMICS :The study of production, distribution, consumption, and the allocation of scarce resources among competing needs. Economics is divided into many specialized areas, including macroeconomics, microeconomics, labor economics, international economics, banking and finance, econometrics, and public finance.

EXPORT-IMPORT BANK OF THE UNITED STATES:
an independent US agency formed in 1934 to promote US trade by offering financial aid to US exporters and by extending loans to foreign countries, the proceeds of which must be spent on US goods and repaid in US dollars.

FREE TRADE :
the absence of tariffs or import quotes so that trade moves "freely" between countries with out major governmental restrictions.

GATT:
General Agreement on Tariffs and Trade, an agreement originally signed in 1948 between countries to negotiate cuts in tariffs.

GLOBALIZATION :
the movement toward integration of all the world's nations; also a corporate strategy to conduct business on a world wide basis; the idea that goods, services, capital, and labor are moving more freely across national borders and that national economies are affected by global forces.

INTEGRATION:
a situation in which organizations, corporations or institutions in various nations agree to yield some powers and pledge loyalty to a regional or international grouping or arrangement.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT:
Commonly known as the World Bank, it began operations in 1945 to provide loans for post-World War II reconstruction and now offers loans for economic development. The Bank obtains funds from member countries based on their economic resources, bonds that it issues, and earnings from investments. It usually makes loans directly to governments for specific projects when private capital is not readily available on favorable terms. A large part of the Bank’s loans are for infrastructure projects, such as electric power, roads, pipelines, water supply and sewage treatment plants, and education. The Bank is affiliated with the United Nations and its headquarters are in Washington, DC.

INTERNATIONAL MONETARY FUND (IMF):
Founded at the economic conference at Bretton Woods in 1944, the IMF seeks to promote international monetary cooperation, maintain orderly economic development and facilitate international currency exchanges. It does this by providing opportunities for consultation among finance ministers and other officials of the member states. Funds are provided by member nations based on the volume of their international trade, their national income and their international reserves. Member nations may borrow from the Fund. The Fund is affiliated with the United Nations and its head quarters are in Washington, DC.

MOST FAVORED NATION (MFN):
the principle of nondiscrimination under which each WTO country will apply the same trading rules to all their trading partner.

MULTILATERAL AGREEMENT ON INVESTMENTS (MAI) :
MAI would allow people and corporations to invest in property and business regardless of national borders. This "investor protection" would apply international rules to regulate investments and would also prohibit local governments from expropriating any thing from foreign investors, which is a common protection, and also prohibit any action that would lower the value of an investor's property or distort the private marketplace. Critics state that environmental laws, aid to minority businesses, zoning practices and other local regulations would be superceded by international regulations.

MULTINATIONAL CORPORATION :
A large company that operates factories, offices or stores in many countries. Multinational companies produce and sell products and services around the world.

NGO: nongovernmental organization

NON-TARIFF BARRIER :
non-tax trade restrictions that reduce or prevent trade, such as quotas, voluntary export restraints, regulations, and standards

NORMAL TRADE RELATIONS (NTR) :
since approval by the US Congress in 1998, the term used in place of "Most Favored Nation"

PROTECTIONISM :
a government policy of imposing high tariffs or low domes quotas on imports to "protect domestic industries from foreign competition

QUOTAS :
Limits on the quantity or volume of trade: Import quotas are restrictions imposed by a country on the import of specific goods and services, generally established to protect domestic producers of a product from a surge of imports, dumping, or subsidized competition. Import quotas may also be imposed for national security reasons.

ROUND:
a periodic set of meetings under the auspices of the WTO, and earlier under GATT, to negotiate a reduction in trade barriers.

SUBSIDIES:
money or support given by the government to producers of goods or services to provide assistance or allow them to sell their goods less expensively

TARIFFS:
taxes on goods as they cross national borders (imports); usually designed to make imports more expensive and thus less attractive to customers

TRADE-OFFS:
idea that every advance is accompanied by both positive and negative consequences; the difference between advantages and disadvantages is the net value.

TRANSPARENCY:
the degree to which the public can see and under stand regulations, policies, decisions and negotiations, specifically referring to procedures in the WTO.

TRADE-RELATED INTELLECTUAL PROPERTY ISSUES (TRIPS) :
WTO rules requiring members to treat intellectual property (patents, copy rights, software programs, etc.) rights of one country the same as those of other countries .

US TRADE REPRESENTATIVE:
A position filled by Presidential appointment to serve as chief international trade policy advisor and negotiator. The USTR at the time of the Seattle conference was Charlene Barshefsky.