Marketing Dynamics Chapter 12. International Trade—Terms and Definitions balance of payments. Income from exports minus the outgo from imports. currency. Money in use in a country. developed country. Country that has a strong base of industrial production, good infrastructure, and a high standard of living; also called industrialized country, advanced economy. developing country. Country that has little industry, poor infrastructure, and a low standard of living; also called emerging market. domestic trade. Trade that occurs within the borders of a nation. emerging market. Developing country; because developing countries are trying to improve their economies, they are often good markets for business. European Union (EU). Twenty-five European countries that have joined together to create a supranational organization that works for peace and prosperity in all the member nations. exports. Products that are sold (go out) to another country. foreign exchange rate. Cost of one currency in terms of another currency. imports. Products that are bought (come in) from another country. international trade. Trade between nations; also called world trade, foreign trade. strong dollar. A dollar that is worth relatively more of a certain foreign currency. trade deficit. Negative balance of payments; income from exports minus income from imports is negative; also called unfavorable balance of trade. trade surplus. Positive balance of payments; income from exports minus income from imports is positive; also called favorable balance of trade. weak dollar. A dollar that is worth relatively less of a certain foreign currency. Copyright Goodheart-Willcox Co., Inc. Permission granted to reproduce for educational use only.