Chapter Five: Marketing in a Global Economy

Absolute Advantage

An absolute advantage is when a business can create goods and services more efficiently than other businesses. It means one country can produce faster and better than another.

Balance of Trade

The difference between a country's imports and exports is called the balance of trade. More imports than exports create a trade deficit, and when a country exports more than it imports, then it has a surplus.

Competitive Advantage 

It is when countries specialize in products that they are better at producing. They can make other products, but only specialize in one for larger profit.

Cross-Cultural Communication

It is when people from different cultures across the world effectively deliver messages in a global business environment. 

Exchange rate

Globalization 

It is the amount that one currency is worth in another currency. It fluctuates and depends on interest rates, inflation, government debt, and the balance of trade.

Trade

Trade is buying and selling goods and services. Domestic trade is trading within one country, and global trade is between countries.