ec340ch1 - Chapter 1 An Introduction to International trade...

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Chapter 1 An Introduction to International trade Globalization Flow of goods and services across borders Movement of people and firms Spread of culture and ideas between countries Tight integration of financial markets Trade in the Global Economy Imports are the purchase of goods or services from another country. Exports are the sale of goods or services to other countries. Germany had the largest exports of goods in 2005 with China and the U.S. coming in second and third. Merchandise goods: includes manufacturing, mining, and agricultural products. Service exports: includes business services like eBay, travel, insurance, and transportation. In combining all goods and services, the U.S. is the world’s largest exporter followed by Germany and China. The Trade Balance of a country is the difference between the total value of exports and the total value of imports. Usually includes both goods and services A Trade Surplus exists when a country exports more than it imports. A
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This note was uploaded on 02/14/2012 for the course EC 340 taught by Professor Ballie during the Spring '10 term at Michigan State University.

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ec340ch1 - Chapter 1 An Introduction to International trade...

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