1.1 An Introduction to business and trade. 

1.1 An Introduction to business and trade

• Transaction: A transaction is an exchange of value
• Domestic business: a business that makes most transactions within the borders of the country in which its based- owned by a person belonging to a country.
• International Business: An economic system of transactions conducted between businesses located in different countries
• Interdependence: When countries work together to fulfill each other’s wants and needs
• Trading partner: When a business develops a relationship with a business in another country.
• Imports: To bring products or services into a country.
• Exports: To send goods or services to another country.
• Balance of trade: The difference between a country’s exports and imports is known as the balance of trade.
• Trade surplus: A country that exports more goods and services than it imports - sells more than it buys
• Trade deficit: A country that imports more goods and services than it exports - buys more than it sells
• Tariff/duty: Is a tax
• Calculate the balance of trade

Exports > Imports = Trade surplus

Imports > Exports = Trade deficit