Chapter 3 - Chapter3 19:45...

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

View Full Document Right Arrow Icon
Chapter 3 19:45 Importing : Buying products from another country Exporting : Selling products to another country Free trade : The movement of goods and services among nations without political  or economic barriers Comparative advantage theory : Theory that states that a country should sell to  other countries those products that it produces most effectively and efficiently,  and buy from other countries those products that it cannot produce as effective or  efficiently Absolute advantage : 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 Balance of trade : The total value of a nation’s exports compared to its imports  measured over a particular period Trade surplus : A favorable balance of trade; occurs when the value of a  country’s exports exceeds that of its imports Trade deficit : An unfavorable balance of trade; occurs when the value of a  country’s imports exceeds that of its exports Balance of payments : The difference between money coming into a country 
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 note was uploaded on 02/01/2011 for the course BMGT 110 taught by Professor Nelson during the Spring '08 term at Maryland.

Page1 / 4

Chapter 3 - Chapter3 19:45...

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