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 transport costs reduce tradability, while digital goods and remote services can be highly tradable despite physical distance. In policy discussions, tradable allowances or permits (for emissions trading) illustrate how rights to pollute or rights to other resources can be bought and sold in markets.

In the labor context, the tradable-versus-nontradable distinction helps explain wage disparities across countries; wages in tradable sectors are more exposed to global competition, while non-tradables are influenced by local demand and cost of living. The concept also underpins financial markets, where assets such as stocks, bonds, and derivatives are described as tradable or highly liquid.

Overall, tradability affects pricing, investment, and economic integration, shaping how commodities, services, and financial instruments move within and across borders.