International

Key Definitions

• Trade: The exchange of goods and services between countries.
• Exports: Goods and services produced domestically and sold to other countries.
• Imports: Goods and services purchased from other countries.

Factors Affecting Trade

• Comparative advantage: Countries specialize in producing goods/services they can produce more efficiently.
• Trade barriers: Tariffs, quotas, subsidies that restrict international trade.
• Exchange rates: Changes in exchange rates affect the relative prices of imports and exports.

Exam Tips

• Understand the concepts of trade, exports, imports, and factors affecting trade.
• Analyze the impact of trade on the economy using relevant examples.