Trade Deficit: A trade deficit occurs when imports exceed exports in terms of value. It reflects an imbalance in trade where a country is buying more goods from abroad than it is selling.
Comparative Advantage: Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost compared to other countries. It determines which goods a country should specialize in producing and trading.
Import Quotas: Import quotas are restrictions on the quantity of certain goods that can be imported into a country. They limit the amount of foreign competition and protect domestic industries.