Week 6: Unit 5 And 6 Flashcards
1
Q
Openness of an economy?
A
Refers to the extent of a country’s involvement in international trade and finance
2
Q
Why do country’s trade?
A
Factors of production are not evenly distributed among countries
(Even if it’s sufficient they should trade to improve status quo)
3
Q
Foreign exchange market
A
The market in which the currency of one country is exhaled for the currency of another
4
Q
Rate of exchange
A
Rate at which currencies are exchanged
