Overview
International trade is a crucial aspect of the global economy, enabling countries to exchange goods and services. It allows nations to specialize in what they produce best, leading to increased efficiency and economic growth. Understanding the dynamics of exports, imports, and trade balance is essen...
Key Terms
Example: A country exporting cars to another country.
Example: A country importing oil from another country.
Example: A trade balance of +$10 million means exports exceed imports by that amount.
Example: Country A can produce wine more efficiently than Country B.
Example: A 10% tariff on imported steel.
Example: A smartphone made from parts sourced globally.
Related Topics
Globalization
The process of increased interconnectedness among countries, affecting trade, culture, and economics.
intermediateEconomic Policy
Government strategies that influence a country's economy, including trade policies.
intermediateForeign Exchange Markets
Markets where currencies are traded, impacting international trade and investment.
advancedKey Concepts
exportsimportstrade balancecomparative advantage