The passage discusses the balance of trade, exchange rates, and factors that affect international business. It defines balance of trade as the difference between a country's total exports and imports, with a surplus being good and a deficit being bad. Exchange rates are determined by supply and demand between countries' currencies. Factors that influence exchange rates and international business include balance of payments, economic conditions, political stability, geography, and cultural differences between societies.

1. By: Heath Barnacascel Principles of Business Ch.3

2. The difference between a country’s total exports and total imports is called the Balance of Trade If a country exports more than it imports, it has a trade surplus, which is good If a country exports less than it imports, it has a trade deficit, which is bad

3. The exchange rate is the value of a currency in one country compared with the value in another Supply and Demand effects the value of currency in a Country The balance of exchange rate between the United States and Mexico is -64,376.3

4. The following are the factors that affect exchange rates : Balance of Payments Economic Conditions Political Stability

5. Geography affects business rates because it affects where you can build you businesses and how easy is it to get to Example- If your business is in a hard to reach area then you might not get as many customers or consumers

6. Culture is the accepted behaviors, customs, and values of a society The main cultural and social factors that affect international businesses are language, religion, values, customs, and social relationships