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Cards In This Set
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Freign/world trade
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International business
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International business
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Business activities needed for creating,
shipping, and selling goods and services
across national borders
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Domestic business
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Making, buying, and selling of goods and services within a country
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Absolute advantage
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Exists when a country can produce a good or service at a lower cost than other countries
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Comparative advantage
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Situation in which a country specializes i the production of a good or service at which it is relatively more efficient
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Imports
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Items bought from other countries
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Exports
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Goods and services sold to other countries
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Balance of trade
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Differene between a country's total exports and total imports
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Trade surplus
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Exports more than it imports - unfavorable
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Trade deficit
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Imports more than it exports - favorable
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Balance of payments
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Difference between the amount of money that comes into a country and the amount that goes out of it
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Positive/favorable balance of payments
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Occurs when a nation receives more money in a year than it pays out
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Negative/unfavorable balance of payments
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Result of a country sending more money out than it brings in
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Foreign exchange market
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Consists of banks that buy and sell different currencies
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Exchange rate
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Value of a currency in one country compared iwth the value in another
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