Autarky: the equilibrium or maximizes its welfare when it produces and consumes has only one point in the absence of trade.
Commodity or net barter terms of trade: The ratio between the prices of exports and imports is called the net barter terms of trade or as Viner puts it, "the commodity terms of trade." To express this symbolically:
Community indifference curve: the various combination of two commodities that yield equal satisfaction to the community or nation
Deindustrialization: The process of social and economic change which is due to the reduction in industrial capacity or the activities of a country's manufacturing and heavy industry.
Equilibrium-relative commodity price in isolation: it is given by the slope of the tangent common to the nation`s production frontier and indifference curve at the autarky point of production and consumption.
Equilibrium-relative commodity price with trade: is the common relative price in both nations at which trade is balanced
General equilibrium model: the deals with only two nations, two commodities and two factors
Incomplete specialization: Production of goods that compete with imports.
Increasing opportunity costs: that the nation must give up more and more of one commodity to release just enough resources to produce each additional unit of another commodity
Law of reciprocal demand: it explains how the barter rate, of exchange is deter­mined between the two nations.
Marginal rate of substitution (MRS): it is of x for y in consumption refers to the amount of y that a nation could give up for one extra unit of x and still remain on the same indifference curve
Marginal rate of Transformation (MRT): it is of x for y refers to the amount of y that a nation must give up to produce each additional unit of x
Offer curves( Reciprocal demand curves): A curve showing, for a two-good model, the quantity of one good