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CH35 APECON MACRO
| Term | Definition |
|---|---|
| open economy | economy that interacts freely with other economies around the world |
| closed economy | economy that does not interact with other economies in the world |
| trade balance | the value of a nation's exports minus value of its imports |
| trade deficit | excess of imports over exports |
| trade surplus | excess of exports over imports |
| net exports | country's exports minus country's imports bought and sold |
| current account | net exports/current balance of trade sum of goods and services, investment income, and transfer payments |
| capital account | change in the current account |
| nominal exhchange | the rate at which a person can trade the currency of one country for the currency of another |
| appreciation | value goes up |
| depreciation | value goes down |
| trade policy | agreements and regulations on controlling imports and exports to foreign countries |
| capital fight | money rapidly flow out of a country due to a economy consequence |