International trade

International trade

1. is the lifeblood of the global economy

   • net exports
     • the annual difference between a country's exports and imports
       • trade deficit
         • The imports are higher that exports
       • trade surplus
         • The exports are higher that imports
   • flows of goods and services
     • export goods and services
     • import goods and services

2. the value of international trade

   • it doesn't make sense to make everything on your own if you can trade with other countries that have a comparative advantage

3. reshuffles jobs from one sector of the economy to another

4. other side of international trade that involves financial assets

   • flows of money
     • the balance of payments
       • the current account
         • records the sale and purchase of goods and services investment income earned abroad and other transfers like donations and foreign
       • financial account or the capital account
         • The buy financial assets like stocks and bonds these transactions are recording in the financial account