World Economy

By: Heath BarnacascelPrinciples of Business

Ch.3

The difference between a country’s total exports and total imports is called the Balance of Trade

If a country exports more than it imports, it has a trade surplus, which is good

If a country exports less than it imports, it has a trade deficit, which is bad

The exchange rate is the value of a currency in one country compared with the value in another

Supply and Demand effects the value of currency in a Country

The balance of exchange rate between the United States and Mexico is -64,376.3

The following are the factors that affect exchange rates:

Balance of Payments

Economic Conditions

Political Stability

Geography affects business rates because it affects where you can build you businesses and how easy is it to get to

Example- If your business is in a hard to reach area then you might not get as many customers or consumers

Culture is the accepted behaviors, customs, and values of a society

The main cultural and social factors that affect international businesses are language, religion, values, customs, and social relationships