Vocab TACN 3 Unit 1-4

Purchase, sale, or exchange of goods and services across national borders

Sending goods to another country for sale or trade

Bringing in goods from another country for sale or trade

Trade theory holding that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports

Ability of a nation to produce a good more efficiently than any other nation

Inability of a nation to produce a good more efficiently than other nations, but an ability to produce that good more efficiently than it does any other good.

Trade theory holding that countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply.

The relative prices of a country's export to import (=PE/PI)

The difference in value between imports and exports of goods over a particular period

A detailed record of all financial and economic transactions between the residents of the two countries. It comprises the current amount, the capital amount, and the financial amount. "Together, these accounts balance in the sense that the sum of the entries is conceptually zero:.