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Global Economics
Question | Answer |
---|---|
exchange rate | price of one country's currency in terms of another country's currency |
flexible exchange rate | exchange rates determined by supply and demand |
depreciation | decerease in the value of one currency relative to other currencies |
appreciation | increase in the value of one currency relative to other currencies |
absolute advantage | is the situation in which a country can produce more of a good than another country can produce with the same quality of resources |
comparative advantage | is the situation in which a country can produce a good at a lower opportunity cost than another country |
less developed country | a country with a relatively low per capita GDP |
balance of trade | exports=imports |