Chapter 8 Flashcards
is the exchange of capital, goods, and services across international borders or territories
international trade
these have major impact on the international trade
industrialization
advanced transportation
globalization
multinational corporations
oursourcing
a branch of economics which together with international finance forms the larger branch of international economics
international trade
advantages of international trade
meeting our needs
job creation
attracting investment
new technology and materials
diverse products and services
disadvantages of international trade
support of non-democratic systems
culture identoty issues
social welfare issues
environmental issues
political issues
is a major export in the world
culture
it displays and promotes values and lifestyles worldwide
culture
are government induced restrictions on international trade
trade barriers
the barriers can take many forms,includes
tariffs
non-tariff barriers to trade
import licenses
export licenses
import quotas
subsidies
voluntary export restraints
local content requirements
embargo
currency devaluation
trade restriction
accounts are an accounting record of all monetary transactions between a country and the rest of the world
balance of payments accounts
these transactions include payments for the countrys exports and imports of goods, services, financial capital, and financial transfers
balance of payments accounts
it summarizes international transactions for a specific period, usually a year, and are prepared in a single currency
BOP accounts
sources of funds for a nation, such as exports or the receipts of loans and investments are recorded as
positive or surplus items
uses of funds, such as fpr imports or to invest in foreign countries, are recorded as
negative or deficit items
elements of BOP
current account
capital account
