3.1 International Business Basics
trade surplus
a country exports(sells) more than it imports(buys)
foreign debt
amount a country owes to other countries
foreign exchange market
banks that buy/sell different currencies
international business
business activities needs for creating, shipping,and selling goods/services across boarders aka foreign or world trade
trade deficit
country imports(buys) more than it exports(sells)
negative balance of payments
country spending more money out than it brings in
balance of trade
difference b/w a countries total exports and total imports
balance of payments
difference between the amount of money that comes into a country and the amount that goes out of it
exports
goods/services sold to other countries
imports
items bought from other countries
Domestic Business
making, buying and selling of goods/services within a country
comparative advantage
situation in which a country specializes in the production of a good/service at which it is relatively more efficient
foreign exchange rates
value of a currency in one country compared with the value of another
absolute advantage
when a country can produce a good or service at a lower cost than other countries because of natural resources/raw materials in that country
positive balance of payments
when a nation receives more money in a year than it pays out