global economy

Avery TrendelBlock 3

The difference between a country’s total exports and total imports is called the balance of trade

It is important for a country because the better trade position they have the more countries will want to trade with them.

The exchange rate is the value of currency in one country compared with the value in another.

Examples of exchange rates One British pound is equal to $1.82 in our

dollars One Japanese Yen is equal to $0.009 in

our dollars.

Balance of Payments Economic Conditions Political Stability

Geography is important when doing business internationally because location, climate, terrain, seaports, and natural resources of a country influence business activity.

For example: a nation with many rivers or seaports can easily ship products out.

Cultural influences are important on international business because language, religion, values, customs, and social relationships come in to play.

For example in Mexico, many businesses close in the afternoon by tradition while people enjoy lunch and a siesta (relaxing period)

Our balance of trade with Australia- $11,874.40

India- ($- 7.095.40) China- ($-266,332.70) Europe- ($-107,239.90)