Foreign Trade: notes

Key terms

• Import: goods or services bought from abroad.
• Export: goods or services sold abroad.
• Visible trade: goods you can touch. Invisible trade: services such as tourism and banking.
• Balance of trade: value of visible exports minus visible imports.

Barriers and blocs

• Tariff: a tax on imports. Quota: a limit on quantity.
• ZIMRA collects customs duty at the border.
• SADC, COMESA and AfCFTA are trading blocs that lower barriers.

Common mistake

A trade deficit means imports are worth more than exports. It is not the same as a budget deficit.