Global Economy Vocab

Global economy

the interconnected economies of the nations of the world

International trade

involved the exchange of goods and services between nations

Multinational corporation

a company that does business in many countries and has facilities and offices around the world.

Trade

specific area of business or industry called, book trade.. skilled occupation like auto mechanics.. people who work in a specific area of business or industry such as construction workers. 

Domestic trade

the production purchase and sale of goods and services within a country

World trade

exchange of goods and services across international boundaries

Imports

goods and services that one country buys from another country

Exports

goods and services that one country sells to another country

Balance of trade

the difference in value between a countries imports and exports over a period of time

Surplus

more of something

Deficit

less of something

Comparative advantage

the ability to produce a country or company to produce a particular good more efficiently than another country or company

Exchange rate

the price at which one currency can buy another currency

Protectionism

government putting limits on foreign trade to protect business at home

Tariff

tax places on imports to increase their price in the domestic market

Quota

limit places on the quantities of product that can be imported

Embargo

a ban on imported or exported product

Free trade

occurs when there are few or no limits on trade between countries.