Abstract

This manual systematizes the basics of a set of methodologies, analytical variables and indicators for a better understanding of international trade dynamics. For the systematic development of that document, the first part includes basic knowledge like definitions of proportions, percentages, annual growth rates, and structural analysis. Based upon that, the second part introduces more comprehensive concepts for a profound analysis of trade. Furthermore, concepts of tariff and nontariff protection, the link between production and trade as well as the main classifications of international trade and their different analytical uses are discussed in detail. The manual focuses on providing the largest number of possible indicators for a better understanding of a country’s trade pattern and its trade dynamics, taking into account the different types of firms and sectors involved in international trade. Among the developed and analyzed indicators are: simple diversification/concentration indices and the Herfindahl-Hirschman index, similarity indices, revealed comparative advantage, the Balassa index, and the index of intra-industry trade (Grubel-Lloyd index). To illustrate the concepts, an important part is dedicated to practical examples from the regional environment. The main purpose of this work is to provide technical support for government officials, negotiators and/or decision-makers in both political and business sectors. However, it is expected that the work will also be used in academia and for the dissemination of the analysis of international trade patterns in Latin America and the Caribbean.