Overview
International trade dynamics play a crucial role in the global economy, influencing how countries interact and exchange goods and services. Understanding the principles of trade balance, comparative advantage, and the impact of tariffs and trade agreements is essential for grasping the complexities ...
Key Terms
Example: A trade surplus occurs when exports exceed imports.
Example: Country A can produce wine more efficiently than cloth, while Country B can produce cloth more efficiently than wine.
Example: The government imposed a 10% tariff on imported steel.
Example: The country set a quota of 1,000 cars per year from foreign manufacturers.
Example: NAFTA is a trade agreement between the U.S., Canada, and Mexico.
Example: Globalization has led to the rise of multinational corporations.