1. Measuring the Value of Trade
Unit 17.3

2. Foreign Exchange Foreign Exchange Markets Foreign Exchange Rate
Currencies can be bought and sold
Foreign Exchange Rate
Price of a currency in the currency of another nation
Fixed Rate of Exchange
Value of currencies are fixed with regard to each other
Flexible Rate of Exchange
Floating currency market
Trade Weighted Value of the Dollar
Strong dollar vs weak dollar

4. Balance of Trade Balance of Trade Balance of Payments Trade Surplus
Exports minus imports
Balance of Payments
Money coming in versus money going out
Trade Surplus
When exports > imports
Trade Deficit
When imports > exports