5.1 Global Business

Connections made among nations when economies freely move goods, labor, and money across borders.

• Trade Policy

• Embargo

• Globalization

• Partnership

Buying and selling of goods and services across national borders

• international trade

• imports

• exports

• GDP

All the business activity involved in making, buying, and selling product within a nation’s borders.

• domestic business

• import

• export

• GDP

Goods and services that are produced within a country’s borders and sold in another country.

• trade policy

• GDP

• imports

• exports

Goods, services, and capital that are brought into a country from outside its borders.

• imports

• exports

• GDP

• surplus

Difference between a nation’s exports and its imports.

• GDP

• balance of trade

• trade surplus

• trade deficit

Cost to convert one currency into another.

• comparative advantage

• expense

• currency converter

• foreign exchange rate

Body of laws related to the exchange of goods and services for international trade.

• trade policy

• trade barrier

• The Constitution

• globalization

Any government action taken to control or limit the amount of imports.

• embargo

• trade barrier

• trade policy

• tariff

Government order that prohibits trade with a foreign country.

• quota

• tariff

• trade policy

• embargo