| A | B |
|---|
| International Business | refers to business activities needed for creating, shipping, selling goods and services across national borders. |
| Absolute Advantage | Some countries can produce certain goods and services at a lower cost than other countries…usually because of an abundance of natural resources or raw materials found in a country. |
| Imports | goods and services bought from other countries |
| Exports | goods and services sold to other countries |
| Foreign Debt | the amount of money a country owes to other countries |
| Balance of Trade | difference between a country’s total exports and total imports |
| Trade Surplus | when a country exports (sells) more than it imports (buys)…that country is said to have a favorable trade position |
| Trade Deficit | when a country imports more than it exports …that country is said to have an unfavorable trade position |
| Foreign Exchange Market | The process of exchanging one currency for another occurs in the________________. |
| Exchange Rate | is the value of a currency in one country compared with the value in another. |
| Balance of Payments | The difference between the amount of money that comes into a country and the amount that goes out of it. |
