The balance of payments is a statement of all transactions made between one country and the rest of the world over a defined period of time. It summarizes the flow of goods, services, and assets into and out of a country.

Comparative advantage refers to a situation where a country can produce a good or service at a lower opportunity cost relative to other countries. According to this theory, countries should specialize in producing goods/services where they have a comparative advantage and trade for other goods/services.

The major components are the current account (trade in goods, services, and income transfers), the capital account (capital transfers and acquisition of non-produced assets), and the financial account (investment flows and reserve changes).

A trade deficit occurs when a country's imports of goods and services exceed its exports. A trade surplus is when a country's exports exceed its imports.

An exchange rate is the value of one currency expressed in terms of another currency. It determines how much money must be paid in one currency to obtain a given amount of another currency.

The major exchange rate regimes are floating exchange rates (determined by market forces), fixed exchange rates (pegged to another currency), and managed float (central bank intervention to influence exchange rates).

The WTO is an international organization that deals with the rules of trade between nations. Its goals are to promote free trade by lowering tariffs and other barriers.

The IMF is an organization that promotes monetary cooperation, financial stability, facilitates international trade, and provides policy advice and resources to member countries.

The World Bank provides loans, advice, and resources to developing countries to fund capital programs with the goal of reducing poverty.

Tariffs are taxes imposed on imported goods and services. They are typically used to raise revenue for governments or protect domestic industries from foreign competition.