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15 Cards in this Set

  • Front
  • Back
the amount by which exports exceed imports
trade surplus
goods and services produced domestically and sold abroad
the rate at which people can trade the goods and services of one country for those of another country
real exchange rate
taking advantage of two prices for the same commodity by buying where it is cheap and selling where it is expensive
the rate at which people can trade one currency for another currency
nomimnal exchange rate
a decrease in the value of a currency measured in terms of other currencies
an economy that does not interact with other economies
closed economy
the value of exports minus the value of imports or the trade balance.
net exports
the theory that a unit of a countries currency should buy the same quantity of goods in all countries
purchasing-power parity
an increase in the value of a currency measured in terms of other currencies
an economy that interacts with other economies
open economy
the amount by which imports exceed exports
trade deficit
goods and services produced in foreign countires and sold domestically
the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners
net capital outflow
a situation in which exports equal imports
balanced trade