+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Domestic business
|
The making, buying, and selling of goods
and services within a country
|
|
International business
|
Refers to business activites needed for
creating, shipping, and selling goods and
services across national borders
|
|
Foreign/World trade
|
Referred to as international business
|
|
Absolute advantage
|
Exists when a country can produce a good or service at a lower cost than other countries
|
|
Comparative advantage
|
A situation in which a country specializes in the production of a good or service at which it is relatively more efficient
|
|
Imports
|
Items bought from other countries
|
|
Exports
|
Goods and services sold to other countries
|
|
Foreign debt
|
The amount a country owes to other countries
|
|
Balance of trade
|
The difference between a country's total exports and total imports
|
|
Trade surplus
|
When a country exports(sells) more than it imports(buys)
|
|
Trade deficit
|
When a country imports more than it exports
|
|
Balance of payments
|
The difference between the amount of money that comes into a country and the amount that goes out of it
|
|
Positive/Favorable balance of payments
|
Occurs when a nation receives more money in a year than it pays out
|
|
Negative balance of payments
|
Unfavorable
|
|
Foreign exchange market
|
The process of exchanging one currency for another occurs in the foreign exchange market, which consists of banks that buy and sell different currencies
|
