Foundations of Economics, 8th Edition

9.1 How Global Markets Work

MyEconLab Concept Video

Because we trade with people in other countries, the goods and services that we buy and consume are not limited by what we produce. The goods and services that we buy from people and firms in other countries are our imports; the goods and services that we sell to people and firms in other countries are our exports.

Imports

The goods and services that people and firms in one country buy from firms in other countries.

Exports

The goods and services that firms in one country sell to people and firms in other countries.

International Trade Today

Global trade today is enormous. In 2015, global exports and imports (the two ­numbers are the same because what one country exports another ...