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chpt. 3

Business in the Global Economy

QuestionAnswer
What are imports? Items bought from other countries
What are exports? Goods and Services sold to other countries
What is balance of trade? The difference between a country's total exports and total imports.
What is balance of payments? The difference between the amount of money that comes into a country and the amount that goes out of it.
What is an exchange rate? The value of a currency in one country compared with the value in another.
What is infrastructure? Refers to a nation's transportation, communication, and utility systems.
What is trade barriers? Restrictions to free trade.
What is quota A limit set by the government on the quantity of a product that may be imported or exported within a given period.
What is tariff? A tax that a governent places on certain imported products.
What is embargo? If a government wishes to do so, it can stop the export or import of a product completely.
Created by: main92
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