International Trade And Its Effects On Economic Agents Essay

1649 Words Sep 18th, 2014 7 Pages
Economics
[Type the document subtitle]

Stephanie Brands
6/16/2013

Contents
International Trade 2
UK Balance of Payments 2
UK Trends in Trade over the last 30 years 2
The 80’s 3
The 90’s 3
Currently 3
Relationship between the Exchange Rate and Balance of Payments 3
The Advantages and Disadvantages and Effects of Two Exchange Rate Regimes 3
Floating Exchange Rates 3
Fixed Exchange Rate 4
Effects of Exchange Rates on Economic Agents 4
Impact of Multinationals on Less Developed Economies 4
References 5

International Trade
A free trade agreement is a group of countries which coordinate a removal of trade barriers between the agreed nations. The European Union is a trading bloc which operates free trade agreements between the 27 member countries. International Trade is the buying and selling of goods and services between countries. One country cannot produce all of the resources they require so trading can be done to gain other resources. The buying and selling of goods and services are recorded in the Balance of Payment Account. Purchases of goods and services from abroad that leads to an outflow of currency from the UK are known as imports. Sales of goods and service to other countries are an inflow of currency to the UK is known as exports.
UK Balance of Payments
Terms of Trade is the relationship between the price received from exports and the amount of imports we are able to buy with that money.

The Balance of Payments is a record of trade between the UK and…

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