International trade

imports|exports|trade balance|exchange rates

world product market/world financial market

Favourable and unfavourable balance of trade

domestic and international trade

Britain concept

importing raw materials

processing into m/g

exporting finished goods

the use of foreign currencies

international borders

flow of funds

returns to exp/flows out of imp

investments - catalyst in economic growth

investment

capital

import manufactured materials

build manufacturing plant

operative

provides jobs, taxes-host country

new m/g for export

nation`s reserves><individual savings

dividents

remitted to the investing country

the host countru credits income to balance of payments/investing country records a debit

expense host country/icome to investing

maintained in holdings/official deposits in

gold/foreign currencies

balance of payment/deficit/withdrawal

deficit=reducing imports

imposing tarrifs, quotas

requiring government approval

US/loans/extend abroad

devalue currency

expensive imp/competitive exp

gold/successive constraints imposed

hold in safekeeping

moving it from custodian vault

free trade agreements

trade wars/sanctions/embargosed

monetary union and single currency