CHAPTER 11 - International Trade Flashcards
1
Q
INTERNATIONAL TRADE
A
- allows countries to obtain goods that cannot be produced domestically
- allows countries to obtain goods that can be bought more cheaply from overseas
- helps to improve consumer choice
- provides opportunities for countries to sell off surplus commodities
2
Q
VISIBLE AMD INVISIBLE TRADE
A
- exports: goods and services sold overseas
- imports: goods and services bought from overseas
- visible trade: trade in physical goods
- invisible trade: trade in services
3
Q
WHAT IS AN EXCHANGE RATE?
A
- exchange rate: value of one currency in terms of another
Most countries in the world do not use the same currency
4
Q
WHEN THERE IS A FALL IN THE EXCHANGE RATE = EXPORTS….
A
FALL
5
Q
WHERE THERE IS A FALL IN THE EXCHANGE RATE = IMPORTS….
A
RISE
6
Q
WHEN THERE IS A RISE IN THE EXCHANGE RATE = EXPORTS…
A
RISE
7
Q
WHEN THERE IS A RISE IN THE EXCHANGE RATE = IMPORTS…
A
FALL
