Definitions Test 1 Flashcards
Balance of Payments
A record of a countries trade and investment with other countries.
Comparative advantage
The ability to produce a product at a lower opportunity cost than other countries, region, firms and people
Current account balance
A record of a countries trade in goods, trade in services, current transfers and income
Developing countries
A country that lacks high level of industrialisation and/or other types of development
Dividends
A share in the profits of firms which is distributed to shareholders
Exchange rate
A price of a currency in terms of other currencies
Foreign direct investment
Investment from one country to another, that involves establishing operations or acquiring tangible assets
International trade
The exchange of goods/services across national boundaries.
