Chapter 14. The International Trade and Capital Flows
KEY TERMS
- balance of trade (trade balance)
- the gap, if any, between a nation’s exports and imports
- current account balance
- a broad measure of the balance of trade that includes trade in goods and services, as well as international flows of income and foreign aid
- exports of goods and services as a percentage of GDP
- the dollar value of exports divided by the dollar value of a country’s GDP
- financial capital
- the international flows of money that facilitates trade and investment
- merchandise trade balance
- the balance of trade looking only at goods
- national savings and investment identity
- the total of private savings and public savings (a government budget surplus)
- unilateral transfers
- “one-way payments” that governments, private entities, or individuals make that they sent abroad with nothing received in return
