International Trade Terms Made Simple Import- Products made in another country and sold here. Example- A car made in Japan and sold in the US Export- A product made here and sold to another country. A car made in Detroit and sold to Europe. Balance of Trade- Imports = Exports

Trade Organizations A group of countries who have agreed to trade with each other. No barriers for trade. NAFTA- North American Free Trade Agreement (Trade Block) EU- European Union (Trading Block) WTO- World Trade Organization ASEAN (Trading Block) G8- Top 8 industrial countries meet G20- Top 20 industrial countries meet

Floating vs. Adjustable Peg Rates Made Simple Floating Exchange Rates is when currency is traded like a product. Value of the currency is based on demand. ($1 = 5 Euros) Adjustable Peg Rates- Used when the dollar was based on gold. ($35= 1oz. Gold). No longer used due to deficit spending