TRADE CONCESSION Meaning and
Definition
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A trade concession is a commercial arrangement or agreement between two or more countries or trading partners that involves the exchange of specific privileges or benefits related to international trade. These concessions are granted to reduce or eliminate trade barriers such as tariffs, quotas, or restrictions on the import or export of goods and services.
Trade concessions are often negotiated as part of bilateral or multilateral trade agreements to promote economic cooperation, enhance market access, and stimulate trade flows between countries. They provide advantages and special treatment for certain products or industries, allowing them to gain a competitive edge in foreign markets.
Typically, trade concessions involve one party agreeing to lower or eliminate trade barriers for the products or services of the other party. This can include reducing import tariffs, increasing import quotas, or providing preferential access to specific markets. In return, the receiving party may grant reciprocal concessions, ensuring mutual benefits and addressing trade imbalances.
Trade concessions play a crucial role in fostering economic growth, attracting foreign investment, and promoting global trade liberalization. By reducing trade barriers, they encourage the expansion of trade volumes and facilitate the flow of goods and services across borders. Moreover, trade concessions contribute to the development of international supply chains, improving efficiency and competitiveness in the global marketplace.
Nevertheless, trade concessions must be carefully negotiated and balanced to avoid harming domestic industries or undermining economic stability. Governments and policymakers need to assess the long-term implications of trade concessions on domestic industries, employment, and overall economic welfare before committing to such agreements.
Common Misspellings for TRADE CONCESSION
- rrade concession
- frade concession
- grade concession
- yrade concession
- 6rade concession
- 5rade concession
- teade concession
- tdade concession
- tfade concession
- ttade concession
- t5ade concession
- t4ade concession
- trzde concession
- trsde concession
- trwde concession
- trqde concession
- trase concession
- traxe concession
- trace concession
- trafe concession
Etymology of TRADE CONCESSION
The word "trade concession" does not have a specific etymology as it is a combination of two separate words.
The word "trade" originates from the Middle English word "traden", which came from the Old English word "tradian" meaning "to tread, to travel, to traffic". It can be traced further back to the Old High German word "tratan" meaning "to tread, to step". The concept of trade refers to the act of buying and selling goods and services.
On the other hand, "concession" comes from the Latin word "concessio", which means "a yielding, giving up" or "a permission, granting". It is derived from the verb "concedere", meaning "to concede", which combines "con-" meaning "together" and "cedere" meaning "to go, to yield".
