Balance of Trade Balance of Payment n Where
Balance of Trade / Balance of Payment n Where is the United States? n n n http: //www. census. gov/foreigntrade/statistics/highlights/top 1012 yr. html http: //www. census. gov/foreigntrade/top/index. html#2011 http: //www. census. gov/indicator/www/ustrade. ht ml http: //www. worldsrichestcountries. com/top_us_ex ports. html http: //www. worldsrichestcountries. com/top_us_im ports. html
Motivation Have the students do “Handout 6 -5 -1 Buy American? It Depends. ”
Motivation (Continued) The students will list their ideas on the board. n The class will examine the list and look for trends. n
Exports n Goods and services that one country sells another country.
Imports n Goods and services that one country buys from another country.
Balance of Trade n A measure of goods (Not services) one country buys and sells with other countries.
Trade Deficit n n Unfavorable Balance of Trade The result when a country imports more than it exports
Trade Surplus n n Favorable balance of trade The result when a country exports more than it imports.
Balance of Payment n n n A more comprehensive concept than balance of trade. The bookkeeping record of all the international transactions a country makes during a year. Not only imports, but also services such as transportation, travel, investment payments such as dividends and interest, and currency transactions between nations.
Independent Practice n The students will do handout 7 -5 -2 Balance of Payments.
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