Define the Following Terms on Basis of Principle of Business Flashcards

Study about the following terms on the basis of the principle of business with these quiz based flashcards. Attempt this set of flashcards which are simple and easy and learn about the following terms on the basis of the principle of business with this.

38 cards   |   Total Attempts: 182
  

Cards In This Set

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Domestic business
The making, buying, and selling of goods and services within a country
International business
Refers to business activites needed for creating, shipping, and selling goods and services across national borders
Foreign/World trade
Referred to as international business
Absolute advantage
Exists when a country can produce a good or service at a lower cost than other countries
Comparative advantage
A situation in which a country specializes in the production of a good or service at which it is relatively more efficient
Imports
Items bought from other countries
Exports
Goods and services sold to other countries
Foreign debt
The amount a country owes to other countries
Balance of trade
The difference between a country's total exports and total imports
Trade surplus
When a country exports(sells) more than it imports(buys)
Trade deficit
When a country imports more than it exports
Balance of payments
The difference between the amount of money that comes into a country and the amount that goes out of it
Positive/Favorable balance of payments
Occurs when a nation receives more money in a year than it pays out
Negative balance of payments
Unfavorable
Foreign exchange market
The process of exchanging one currency for another occurs in the foreign exchange market, which consists of banks that buy and sell different currencies