Chapter 10
It’s that time!!
What time??
Notes time!!
J

If the demand for coffee in the United States is so high, why can we not simply produce the coffee beans in the US?

Chapter 10.1
The Global Marketplace

The Global Economy
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The connected economies of all countries in the world.
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International trade
›
Fuels the global economy
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The exchange of goods and services between nations.
›
Referred to as globalization

Multi-National Corporation
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A company that conducts business in many countries and has facilities set up around the world.
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Examples?

Balance of Trade
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Imports are greater than exports =
Deficit
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Exports are greater than imports =
Surplus
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The difference in value between a country’s imports and exports over a period of time = Balance of Trade

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Australia = Favorable trade balance
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France = Unfavorable trade balance

Specialization
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Specific focus on one area
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Builds and sustains a market economy
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Countries specialize in producing certain goods.
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Comparative Advantage – producing a product more efficiently than another country.

Currency
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Money
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Different countries = different currency
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Foreign Exchange Market
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Exchange Rate – Price at which one currency can buy another.

If you had $100 (US), how much would you have in your country? The one you used for the activity yesterday. Record on Notes Handout.
Use Google Exchange Rate