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Global Economy Slide Show 3


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Global Economy Slide Show 3

  1. 1. GLOBAL ECONOMY Sydney Marshall Block 3 Balance of Trade : the difference between a country’s total exports and total imports. -This is important for a country because it shows the country if they had a trade surplus or a trade deficit.
  2. 2. Exchange Rate <ul><li>Exchange rate: the value of a currency in one country compared with the value of another. Supply and demand may affect this value of currency. </li></ul><ul><li>The U.S exchange with Mexico is = </li></ul><ul><li>The U.S exchange with Russia is = </li></ul><ul><li>The U.S exchange with Japan is= </li></ul>
  3. 3. FACTORS! <ul><li>Three factors that can affect the exchange rate are: </li></ul><ul><li>Balance of Payments : when a country has a favorable balance of payments, the currency usually stays constant or rises. </li></ul><ul><li>Economic Conditions: when prices increase and the buying power of the money declines, its currency will not be appealing. </li></ul><ul><li>Political Stability: companies and individuals want a stable government. </li></ul>
  4. 4. GEOGRAPHY <ul><li>The location, climate, terrain, seaports, and natural resources of a country influence business activity. Very hot weather will limit the types of crops that can be grown. </li></ul><ul><li>Countries with few natural resources must depend on imports. </li></ul>
  5. 5. CULTURE <ul><li>Cultural influences are important when doing business internationally because people must know the correct ways to do business in certain areas. </li></ul><ul><li>For Example: Sometimes it is appropriate to hug in a business greeting. While other times, all that is appropriate is a handshake. </li></ul>
  6. 6. BALANCE OF TRADE <ul><li>The U.S. balance of trade with: </li></ul><ul><li>Australia:+11,874.4 </li></ul><ul><li>India: - 709.4 </li></ul><ul><li>China:-266 </li></ul><ul><li>Europe: -107 </li></ul>