international trade and exchange rates

Question 1

what is international trade

Answer 1

when a business based one country trades with a business in another this is called international trade

Question 2

what are imports

Answer 2

goods bought from outside countries

Question 3

what are exports provide an example

Answer 3

goods sold to outside countries

Question 4

what is invisible trade provide an example

Answer 4

a service given to another country

Question 5

what is visible trade provide an example

Answer 5

an object bought or sold to another country

Question 6

what is visible balance/balance of trade

Answer 6

the difference between total visible imports and exports

Question 7

how much will it cost a french firm to buy goods from a british firm that cost 400,000 pounds if 1 pound= 1.20 euros

Answer 7

400,000 x 1.2 = 480,000

Question 8

what is the exchange rate

Answer 8

the value of one currency for the purpose of conversion to another

Question 9

when exchange rates falls what happens to imports and exports

Answer 9

demand for import will fall demand for export will rise

Question 10

when exchange rates fall what happens?

Answer 10

demand for import will fall demand for export will rise

Question 11

when exchange rates rises what happens to imports and exports

Answer 11

demand for import will rise demand for export will fall