Buying and selling goods and services across international borders. Countries with trade surpluses export more than they import, while those with deficits import more than they export
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Supply: How much of a product or service is available to buy. Demand: How much of that product or service people want to buy. When supply is high but demand is low, prices go down. When demand is high but supply is low, prices go up
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Similar ideas to Trade
Trade Deficits happen when the value of a country's imports exceeds the value of its exports. The imports and exports include goods, physical products, and services.
It's not inherently good or bad but trade deficits can actually be a sign of a strong economy and under certain conditions c...
A meaningful comparison of prices across countries requires a wide range of goods and services. To facilitate this University of Pennsylvania and UN joined forces to establish International Comparison Program.
PPPs generated by the ICP have a basis from a worldwide price survey that compare...
Certain countries have unique strengths, local resources and talent that can be a comparative advantage to them, and make products at a cheaper cost than other countries. If they indulge in protectionism, the end result is higher costs and inefficiency for all.
Example: China ...
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