Balance of Trade: The balance of trade is the difference between a country's exports and imports during a specific period, usually a year. It shows whether a country has a trade surplus (exports exceed imports) or a trade deficit (imports exceed exports).
Comparative Advantage: Comparative advantage is when one country can produce goods or services at a lower opportunity cost than another country. This concept explains why countries specialize in producing certain goods and engage in international trade.
Tariff: A tariff is a tax imposed on imported goods by the government. It increases the price of foreign products, making domestic products relatively cheaper and protecting domestic industries from foreign competition.