Lesson+01


 * Lesson 1 - Business in a Global Society**

• Imports – goods and service one country buys from another country • Exports – goods and services one country sells to another country • Balance of trade – the difference in value between how much a country imports and how much it exports • Multinational corporation-a company that does business and has facilities in many countries around the world • Exchange rate-the price at which the currency of one country can buy the currency of another country • Balance of trade-the difference in value between how much a country imports and how much it exports • Protectionism-limiting trade with other countries to protect business at home • Tariff-a tax placed on imported products to make them more expensive than domestic products • Quota-a limit placed on the quantities of a product that can be imported • Embargo-a ban on the import or export of a product • Free trade-few or no limits on trade between countries
 * Important Terms for this Lesson:**

** Q: ** How do international business activities create jobs? ** A: ** The international business activities increase the need to produce products and services around the world, resulting in greater employment opportunities. ** Q: ** What is one example of global dependency in the U.S?  ** A: ** U.S. is globally dependent on energy sources from the Middle East. ** Q: ** Why would a country consider using trade barriers? ** A: ** Trade barriers are used to protect domestic production and domestic jobs. ** Q: ** Why should a country be concerned about the falling value of its currency? ** A: ** The falling value indicates economic weakness and bigger problems for the country’s future economy. ** Q: ** What is the difference between a good and a service? ** A: ** A good you can see and touch; it is a product to meet wants and needs. Services are activities that are consumed at the same time they are produced