Chapter 5: Business in a Global Economy

Front

Globalization

Back

the connection made among nations when economies freely move goods, labor, and money across borders

Front

Culture

Back

the shared beliefs, customs, practices, and social behavior of a particular group or nation

Front

International Trade

Back

the buying and selling of goods and services across national borders

Front

Domestic Business

Back

all the business activity involved in making, buying, and selling product within a nation’s borders

Front

Exports

Back

goods and services that are produced within a country’s borders and sold in another country

Front

Imports

Back

goods, services, and capital that are brought into a country from outside its borders

Front

Absolute Advantage

Back

when a country can produce goods more efficiently and at a lower cost than another country

Front

Comparative Advantage

Back

when a country specializes in producing a product at which it is relatively more efficient

Front

Balance of Trade

Back

the difference between a nation’s exports and its imports

Front

Balance of Payments

Back

the total amount of money that comes into a country, minus the total amount of money that goes out for a specific period of time