Business Essentials, 12/e

International Trade

1. Objective 4-2 Explain how differences in import–export balances, exchange rates, and foreign competition determine the ways in which countries and businesses respond to the international environment.

The global economy is essentially defined by international trade. International trade occurs when an exchange involving goods, services, and/or currency takes place across national boundaries. Although international trade has many advantages, it can also pose problems if a country’s imports and exports don’t maintain an acceptable balance. Table 4.1 lists the United States’s 15 largest trading partners. However, the United States also does business with many more countries. For instance, in 2013, the United States exported ...