II.
1. International economics ( ) deals with the flow of commodities, services, and capital across national boundaries.
2. The subject matter of international economics ( ) consists of issues raised by the special problems of economic interaction between sovereign states: the gains from trade, the pattern of trade, protectionism, the balance of payments, exchange rate determination, international policy coordination, and the international capital market.
3. Gains from trade ( ) means that when countries sell goods and services to one another, this is almost always to their mutual benefit.
4. Protectionism () - a policy position favoring aid to import-competing industries by tariffs, subsidies, quotas, other restrictions on imports, and sometimes also aid to export industries by direct or hidden subsidies.
5. Balance of payments ( ) - a record of all economic transactions between residents of one country and residents of the rest of the world during a given time period.
6. Internationally traded goods (, ) - primary commodities (agricultural commodities, minerals, and fuels) and manufactured or processed commodities (steel, chemicals, cars, etc.)
7. Nontraded goods ( ) - goods, which each country produces for itself.
8. The law of comparative advantage in case if international economics ( ) - states that countries specialize in producing and exporting the goods that they produce at a lower relative cost that other countries.
9. Commercial policy ( ) - is government policy that influences international trade through taxes or subsidies or through direct restrictions on imports and exports.
10. Exports () - spending for the goods and services produced in an economy by foreign individuals, firms, and governments.
Exports - goods and services produced in one country and sold in other countries in exchange for goods and services, gold, foreign exchange or settlement of debt.
11. Export transaction ( ) - a sale of a good or service, which increases the amount of foreign money (or of their own money) held by the citizens, firms, and governments of a nation.
12. Imports () - spending by individuals, firms, and governments of an economy for goods and services produced in foreign nations.
Imports - the inflow of goods and services into a country's market for consumption.
13. Import transaction ( ) - the purchase of a good or service, which decreases the amount of foreign money (or of their own money) held by the citizens, firms, and governments of a nation.
14. Trade controls ( ) - tariffs, export subsidies, import quotas, and other means a nation may employ to reduce imports and expand exports in order to eliminate a payments deficit.
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15. Payments deficit (balance of payments deficit) ( ) - the outpayments that result from the autonomous transactions exceeding the inpayments from these transactions.
16. Out payments ( ) - the expenditures of (its own or foreign) money which the individuals, firms, and governments of one nation make to purchase goods and services, for remittances, for government loans and grants, and capital outflows abroad.
17. Remittance ( ) - a gift or grant; a payment for which no good or service is received in return.
18. Autonomous transaction ( ) - a nation's exports of goods and services, imports of goods and services, remittances, government transactions, and capital movements; the transactions in the international balance of payments caused by basic economic considerations.
19. Inpayments ( - ) - the receipts of (its own or foreign) money which the individuals, firms, and governments of one nation obtain from the sale of goods and services, remittances, government loans and grants, and capital inflows from abroad.
20. Payments surplus ( ) - the inpayments that result from the autonomous transactions exceeding the outpayments from these transactions.
21. The principle of targeting ( ) says that the most efficient way to attain a given objective is to use a policy that influences that activity directly. Policies that attain the objective but also influence other activities are second-best because they distort these other activities.
22. Terms of trade ( ) - indicate how much of one good will be exchanged for a unit of another good.
23. World price ( ) -is the price determined by the world supply and world demand for a product.
