Puget Sound’s Trade and Competitiveness

Glossary

International Trade
Trade between two or more partners from different countries (an exporter and an importer).

Exports
Goods and services produced in one country and sold in other countries in exchange for goods and services, gold, foreign exchange, or settlement of debt.

Imports
The inflow of goods and services into a country’s market for consumption.

Outsourcing
Purchasing a functional service for the company from another business. Types of services commonly outsourced are payroll, taxes, and advertising. Services are usually outsourced to save money or to exploit the skills of another entity. Typically used in terms of the business world, outsourcing often entails an enterprise using another company, such as a consultancy or application service provider, to provide a service that the enterprise can provide for itself, yet it is believed to be cheaper and more efficient to utilize a third-party’s resources.


Foreign Direct Investment
The act of building productive capacity directly in a foreign country. Foreign direct investment is an important feature of a globalized economic system.

Globalization
Name for the process of increasing the connectivity and interdependence of the world’s markets and businesses. This process has dramatically sped up in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally. In general, as economies become more connected to other economies, they have increased opportunity but also increased competition.

Balance of Payments
An accounting record of all transactions made by a country over a certain time period, comparing the amount of foreign currency taken in to the amount of domestic currency paid out.