Chapter 3 Vocab

business activities needed for creating, shipping, and selling goods and services across national borders

• domestic business

• international business

When a country can produce a good or service at a lower cost than other countries

• absolute advantage

• comparative advantage

When a country specializes in the production of a good or service at which it is relatively more efficient

• absolute advantage

• comparative advantage

Items brought from other countries

• exports

• imports

Goods and services sold to other countries

• exports

• imports

the difference between a country's total exports and total imports

• balance of trade

• balance of payments

the difference between the amount of money that comes into a country and the amount that goes out of it

• balance of trade

• balance of payments

the value of a currency in one country compared with the value in another

• interest rate

• rate of return

• exchange rate

a nation's transportation, communication, and utility systems

• trade barrier

• infrastructure

restrictions to free trade

• trade barrier

• infrastructure