Exchange rate: The price of one’s currency in terms of another currency
Foreign exchange market: The market where currencies are bought and sold.
Exchange control: Limits on the amount of foreign currency available to importers, which
consequently limit imports
Appreciation: The rise in value of a currency against others. Exports will become more expensive
abroad and imports cheaper at home.
Depreciation: The fall in value of a currency against others. Exports will become cheaper abroad
and imports expensive at home.
Devaluation: Depreciation brought about the government, normally by a government which fixes
the value of its currency.
Exports: The movement of goods or commodities out of the country.
Imports: The movement of goods or commodities into the country.
Protectionism: Policy of protecting domestic industries against foreign competition by means of
tariffs, subsidies, import quotas, or other handicaps placed on imports.
Free trade: A system of trade policy that allows traders to trade across national boundaries
without interference from the respective governments.