BP_3.1_International Business

Good and services sold to other countries

• exports

• imports

• comparative

• absolute

Items bought from other countries

• exports

• imports

• comparative

• absolute

The difference between a country's total export and total imports

• balance of payments

• trade surplus

• unfavorable

• balance of trade

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

• dollar value

• exchange rate

• interest rate

• store of value

Business activities needed for creating, shipping, and selling goods and across national borders.

• International business

• Absolute advantage

• Domestic business

• Comparative advantage

Comparative advantage

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

• Items bought from other countries

• A situation in which a country can produce a good or service at a lower cost than other countries.

• Items sold to other countries.

Trade deficit

• A country exports (sells) more than it imports (buys).

• A country imports (buys) than it exports (sells).

• The difference between a country's total exports and total imports.

• The amount a country owes to other countries.

Foreign Exchange Market

• Banks that buy and sell currency

• Value of currency in one country compared with the value in another.

• The cost of using someone else's money