Classical Trade Theory, also known as Ricardian Trade Theory, emphasizes the concept of comparative advantage, which suggests that countries should specialize in producing and exporting goods in which they have a lower opportunity cost.

Protectionist trade policies aim to protect domestic industries from foreign competition by imposing tariffs, quotas, or other barriers to imports.

The North American Free Trade Agreement (NAFTA) was a trilateral trade agreement between the United States, Canada, and Mexico, which aimed to eliminate tariffs and other trade barriers among the three countries.

Offshoring refers to the relocation of business operations, such as manufacturing or customer service, to a foreign country with lower labor costs.

The New Trade Theory, also known as the Krugman-Helpman-Romer (KHR) model, emphasizes the role of economies of scale and imperfect competition in determining trade patterns and economic growth.

Currency undervaluation occurs when a country's currency is valued lower than its true purchasing power parity (PPP) value, making its exports cheaper and imports more expensive.

Mercantilism is an economic policy that emphasizes the importance of exports over imports, aiming to accumulate wealth and power through a favorable balance of trade.

Trade balance refers to the difference between a country's exports and imports, indicating whether the country is running a trade surplus (positive balance) or a trade deficit (negative balance).

Endogenous Growth Theory suggests that economic growth is driven by factors internal to the economy, such as technological change and innovation, rather than external factors like trade.

Currency overvaluation occurs when a country's currency is valued higher than its true purchasing power parity (PPP) value, making its exports more expensive and imports cheaper.

Free trade refers to the absence of government restrictions on international trade, allowing goods and services to move freely between countries without tariffs, quotas, or other barriers.

Balance of payments refers to the systematic record of all economic transactions between a country and the rest of the world over a period of time.

The New Trade Theory, also known as the Krugman-Helpman-Romer (KHR) model, emphasizes the role of economies of scale and imperfect competition in determining trade patterns and economic growth.

Internal migration refers to the movement of people from one region or country to another within the same country, often driven by economic opportunities or personal reasons.