Tradable
Tradable is an economic term describing goods, services, or assets that can be bought and sold in markets, typically across borders or jurisdictions, with relatively low transport and transaction costs. In macroeconomics, the distinction between tradable and non-tradable sectors helps explain patterns of price levels, productivity, and wage dynamics. Tradable goods are those that can be produced in one country and consumed in another, such as manufactured products, commodities, and financial instruments. Non-tradable goods, by contrast, are largely tied to a location and cannot be easily moved or duplicated at scale, such as housing, locally provided services (haircuts, medical care), and certain utilities.
The tradability of a good depends on technology, geography, regulation, and infrastructure. Trade barriers, tariffs, and
In the labor context, the tradable-versus-nontradable distinction helps explain wage disparities across countries; wages in tradable
Overall, tradability affects pricing, investment, and economic integration, shaping how commodities, services, and financial instruments move