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International trade - Coggle Diagram
International trade
imports|exports|trade balance|exchange rates
world product market/world financial market
domestic and international trade
the use of foreign currencies
international borders
Britain concept
importing raw materials
processing into m/g
exporting finished goods
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
maintained in holdings/official deposits in
balance of payment/deficit/withdrawal
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
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
Favourable and unfavourable balance of trade
gold/foreign currencies