ECONOMICS
Lesson 16 Financing International Trade

Lesson 16 Financing International Trade - #16 Financing...

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#16: Financing International Trade Key Terms: Export: An international transaction in which a foreign currency is converted into a domestic one in order to purchase a domestic good; also called a receipt. Import: An international transaction in which a domestic currency is converted into a foreign one in order to purchase a foreign good; also called payment. Exchange Rate: The price at which one currency can be purchased with another. Appreciation: An increase in a domestic currency’s value in terms of another currency. Depreciation: A decrease in a domestic currency’s value in terms of a foreign currency. Flexible Exchange Rate: Am exchange rate for a currency that is determined entirely in the international market by demand and supply, with no government intervention; also called floating exchange rate. Fixed Exchange Rate: An exchange rate for a currency that is fixed in relation to another currency, such as the US dollar.
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