The Comparative Advantage Theory, developed by David Ricardo, argues that countries should specialize in producing goods in which they have a relatively lower opportunity cost compared to other countries.

Competition policy aims to promote fair competition in markets, thereby maximizing consumer welfare by ensuring lower prices, higher quality products, and increased innovation.

Protectionism is a trade policy that uses tariffs, quotas, or other barriers to restrict imports and protect domestic industries from foreign competition.

The WTO's primary objective is to regulate international trade by establishing rules and procedures for the conduct of trade between its member countries.

Trade imbalance refers to the situation when a country's imports exceed its exports, resulting in a trade deficit, or when its exports exceed its imports, resulting in a trade surplus.

Mercantilism is an economic theory that advocates for government intervention in trade to promote national wealth and power by imposing tariffs and other restrictions on imports.

Currency undervaluation occurs when a country's currency is worth less than its true value compared to other currencies, making its exports cheaper and imports more expensive.

Free trade is a trade policy that advocates for the reduction or elimination of tariffs and other trade barriers between countries, allowing goods and services to flow freely across borders.

Currency overvaluation occurs when a country's currency is worth more than its true value compared to other currencies, making its exports more expensive and imports cheaper.

The Absolute Advantage Theory, developed by Adam Smith, argues that countries should specialize in producing goods in which they have an absolute advantage, meaning they can produce them at a lower absolute cost than other countries.

Trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade.

Protectionism is a trade policy that uses quotas, embargoes, or other quantitative restrictions to limit the quantity of imported goods, thereby protecting domestic industries from foreign competition.

Trade surplus occurs when a country's exports exceed its imports, resulting in a positive balance of trade.

The Comparative Advantage Theory, developed by David Ricardo, argues that countries should specialize in producing goods in which they have a relatively lower opportunity cost compared to other countries.

Trade equilibrium occurs when a country's imports and exports are equal, resulting in a balanced trade.