IT 104 - Chapter 3

IT 104 - Chapter 3 - Chapter 3 1 Importance of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 1. Importance of International Trade is that there are six (6) billion potential customers in the world . 2. Largest exporter in the world is the United States . 3. Why must U.S. trade? A. No nation can produce all the products they need . B. Needs for people can’t fulfilled . C. Lacks in the technology know how . 4. Free trade is the movement of goods and services among nations without political or economical barriers . 5. Comparative Advantage (Sell) produce most efficient (excess) (Buy) cannot be produced effectively or efficiently 6. Absolute Advantage is the advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries . 7. Small businesses generate ½ private sector commerce , but only 30% of the export. 8. Balance of trade is the total value of a nation’s exports compared to its imports measured over a particular period (ratio of exports to imports) . 9. Trade deficit is an unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports . 10. Balance of payments is the difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 03/26/2010.

Page1 / 4

IT 104 - Chapter 3 - Chapter 3 1 Importance of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online