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Trade Deficit
A condition in which a nation's imports of goods and services surpass its exports, resulting in a deficit in the trade balance.
Absolute Advantage
A situation where a country, entity, or individual can produce a good or service more efficiently (using fewer resources) than another.
Comparative Advantage
The ability of a country or individual to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade.
Tariffs
Taxes on imported goods and services, imposed to raise revenue and/or protect domestic industries from foreign competition.
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