| A | B |
|---|
| domestic business | The making, buying, and selling of goods and services within a country. |
| international business | The business activities needed for creating, shipping, and selling goods and services across national borders. |
| absolute advantage | An economic principle that exists when a country can produce a good or service at a lower cost than other countries. |
| comparative advantage | An economic situation in which a country specializes in the production of a good or service at which it is relatively more efficient. |
| imports | Items that are bought from other countries. |
| exports | Goods and services sold to other countries. |
| balance of trade | The difference between a country's total exports and total imports. |
| foreign debt | The amount a country owes to other countries. |
| trade surplus | A trade position where a country exports more than it imports |
| trade deficit | A trade position where a country imports more than it exports. |
| balance of payments | The difference between the amount of money that comes into a country and the amount that goes out of it. |
| exchange rate | The value of a currency in one country compared with the value in another. |
| foreign exchange market | Consists of banks that buy and sell different currencies. |
| interest rates | The cost of using someone else's money. |
