Trade Key Terms Flashcards
What does globalisation mean?
Countries are drawn together in a single global economy.
What does interdependence mean?
increasing reliance on other countries
What does trade mean?
Buying and selling of goods and services between countries
What’s an example of Trade
The exchange of electronics from Japan for coffee from Brazil
What can be Traded?
Energy, food, water, money, technology, data
imports meaning
good and services bought from other countries
Imports example
the United Kingdom importing wine from france
exports meaning
goods and services sold to other countries
exports example
germany exporting cars to the United States
balance of trade
the difference in value between a country’s imports and exports
Balance of trade example
If the UK exports’ £100 billion and imports £120 billion, the balance of trade is -£20 billion
Trade Deficit
when a country’s imports exceed its exports in value
Trade Deficit example
The United States often has a trade deficit with China
Trade surplus
when a country’s exports exceed it imports in value
Trade surplus example
Germany typically has a trade surplus with many countries
