pbmf chapter 5

1. all the business activity involved in making, buying, and selling product within a nation’s borders.
3. means that its exchange rate is set by the market forces of the supply and demand in the foreign exchange market
6. the shared beliefs, customs, practices, and social behavior of a particular group or nation.
8. connection made among nations when economies freely move goods, labor, and money across borders.
10. the difference between a nation’s exports and its imports.
11. the buying and selling of goods and services across national borders
13. 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.
15. government order that prohibits trade with a foreign country.
16. are embargoes that affect only certain goods.

2. any government action taken to control or limit the amount of imports.
4. when a country can produce goods more efficiently and at a lower cost than another country.
5. when a country specializes in producing a product at which it is relatively more efficient
7. the cost to convert one currency into another
9. body of laws related to the exchange of goods and services for international trade
12. goods and services that are produced within a country’s borders and sold in another country.
14. goods, services, and capital that are brought into a country from outside its borders