Trade and Apparel Industry Terms

Sourcing

• The process of determining how, when, and where products are manufactured or purchased.

• A method for evaluating supplier performance.

• A strategy for reducing production costs.

• A technique for improving product design.

Balance of Trade

• The total value of a country's exports in a year.

• The difference between the value of a country's exports and imports over a certain period.

• The amount of money a country owes to foreign nations.

• The total value of a country's imports in a year.

Trade Imbalance

• A surplus in exports over imports.

• A disparity in the value of exports and imports.

• An equal value of exports and imports.

• A deficit in exports compared to imports.

Exports

• Goods produced in one country and sold to another.

• Goods produced and consumed within the same country.

• Goods that are imported from another country.

• Goods that are sold at a loss to boost sales.

Imports

• Goods produced domestically for sale.

• Goods brought into a country from abroad for sale.

• Goods exported to other countries for trade.

• Goods that are manufactured locally.

Free Trade Agreements (FTA)

• Treaties between two or more countries to reduce trade barriers and increase trade.

• Agreements that impose tariffs on imported goods.

• Contracts that restrict trade between nations.

• Policies that promote local businesses over foreign imports.

World Trade Organization (WTO)

• An international body that regulates and facilitates international trade among countries.

• A global organization that focuses on environmental protection.

• A financial institution that provides loans to developing countries.

• A military alliance formed for collective defense.

Globalization

• The process of interaction and integration among people, companies, and governments worldwide, often resulting from international trade.

• A method of localizing products to fit regional markets.

• A strategy for reducing international trade barriers.

• A trend towards isolationism in global politics.

North American Free Trade Agreement (NAFTA)

• An agreement between the U.S., Canada, and Mexico to promote trade by eliminating tariffs.

• A treaty that imposes tariffs on goods traded between the U.S. and Canada.

• A bilateral agreement between the U.S. and Mexico to restrict trade.

• A trade agreement that only involves Canada and Mexico, excluding the U.S.

Tariffs

• Taxes imposed by a government on imported or exported goods.

• Fees charged for shipping goods internationally.

• Subsidies provided to local businesses for exports.

• Regulations on the quality of imported products.