International Trade and Money Questions and Answers Unit : 8 ( 2023)

Exports - -the sale of goods and service created by domestic producers and sold to foreigners -Imports - -the purchase of goods and service created by foreigners -Net exports - -exports - imports -Trade deficit - -exporting less than you are importing -Trade surplus - -exporting more than is imported -What is the balance of payments? - -Summary of all international transactions within a given year prepared in the domestic country's currency. It has two accounts, the current account and he financial account. -What is the current account? - -Measures the international trade in goods and services, investment income, and net transfer payments. -Financial account - -Measures the international trade of financial assets like stocks, bonds, and real estate. -Net capital flow - -The difference between the amount of money coming into a country to buy domestic assets and the amount of money leaving a country to buy foreign assets.