The flow of trade refers to how goods and services move between countries or regions. It includes importation (buying goods from foreign markets) and exportation (selling goods to foreign markets).
Imagine flow of trade as a busy airport terminal where planes are constantly landing (imports) and taking off (exports). Just as passengers come from different places carrying various items in their luggage, countries also have unique products they bring into the global market.
Trade Deficit: A situation in which a country imports more than it exports; similar to when more planes land than take off at an airport.
Trade Surplus: A situation where a country exports more than it imports; akin to having more planes take off than land.
Tariffs: These are taxes on imported goods. It's like an airport tax that passengers have to pay when they land.
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