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