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Fixed Rate

In business economics, this refers to a currency exchange rate where currency values are tied to the value of a specific currency or precious metal, e.g. gold. More generally fixed rate can refer to any transaction where the rate of return is fixed, e.g. fixed rate interest on loans or deposits. Fixed rate is a term… Read more

Structural Deficit

This refers to the level of deficit (when government spending exceeds taxation income) which occurs even then the economy is at full employment. Structural Deficits ignore one-off or short term factors and continue for a longer period. As deficits are funded by borrowing, over time a large structural deficit will undermine confidence in the country’s… Read more

Current Account

In business economics this refers to a measure of a countries exports and imports. The current account measures trade in Goods (visible trade), trade in services (invisible trade), investment incomes and Net transfers (international aid). A deficit on the current account typically means that the value of imports is greater than the value of exports.… Read more

Invisible Trade

This is an economic term which refers to the trade in services. Invisible Trade forms part of an economy’s Current Account of Balance of Payments. Invisible Trade is a term normally found in business economics and financial management.

Visible Trade

This is an economic term which refers to the trade in goods. Visible Trade forms part of an economy’s Current Account of Balance of Payments. Visible Trade is a term normally found in business economics and financial management.

Customs Union

This refers to a type of trading bloc where participants agree to the elimination of import and export tariffs between countries and the imposition of common external tariffs. Whilst reducing barriers to trade within the Customs Union, the lack of internal tariffs creates a barrier to trade for those outside the union. Customs Union is… Read more

Trading Bloc

This refers to a region or group of countries between whom barriers to trade are reduced or eliminated. Trading blocs include customs unions, free trade areas, common markets. Trading Blocs is a term normally found in business economics and financial management.

Free Trade Area

This refers to a type of trading bloc where two or more countries in a region agree to reduce or eliminate barriers to trade on all goods coming from other members. Whilst reducing barriers to trade within the Free Trade Area, the lack of internal tariffs creates a barrier to trade for those outside the… Read more

Trade Barriers

This refers to the imposition of restrictions on free trade between economies. Trade Barriers can include import tariffs, quotas, specialised specifications or standards for goods, bureaucracy and subsidies for domestic businesses. Trade Barriers is a term normally found in business economics and financial management.

Protectionism

This refers to the deliberate policy of limiting imports and/or promoting exports. Protectionism restricts the free movement of trade through the imposition of Trade Barriers. Protectionism is a term normally found in business economics and financial management.