Chapter 10.1 The Global Marketplace
Domestic trade is the production, purchase, and sale of goods and services within a country. Countries do not produce everything their citizens want or need and must trade with other countries. Word trade is the exchange of goods and services across international boundaries. Most nations produce items in which they specialize, this gaining a comparative advantage. A comparative advantage allows countries to trade their specialty with other countries for other things that they want or need. Items purchased across borders are bought int he currency used by the country that produced them. Foreign exchange markets allow one country's currency to be converted into another country's currency.
global economy: the interconnected economies of the nations of the world.
international trade: the exchange of goods and services between nations.
multinational corporation: a company that does business in many countries and has facilities and offices around the world.
trade: the activity of goods and services between nations
imports: good and services that one country buys from another country
exports: goods and services that one country sells to another country
balance of trade: the difference in value between a country's imports and exports over a period of time
comparative advantage: the ability of a country or company to produce a particular good more efficiently than another country or company
exchange rate: the price which one currency can buy another currency
specific: applying to, characterized by, or distinguishing something particular, special, or unique
professional: one who engages in a pursruit or activity professionally
sustain: to give support or relief to
vehicle: a means of carrying or transporting something