International businessLesson 1 of 4 in the course Competing in the Global Marketplace

U.S. Global Trade: Opportunities, Trade Balances, and Exchange Rates

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

Save course
Lesson progress
0 / 5

Your progress is kept in this browser only.Sign up to save it

Summary

Global trade connects businesses, customers, suppliers, and competitors across national borders. This lesson explains what a global vision is and why it matters to U.S. businesses and the wider economy.

A global vision is the ability to recognize and respond to international business opportunities, understand threats from foreign competitors, and use worldwide networks to obtain materials and deliver products to customers. It is relevant not only to large corporations but also to small and medium-size firms seeking lower costs, greater efficiency, or new customers.

All flashcards

Global vision
The ability to recognize international opportunities, anticipate foreign competition, and use worldwide business networks.
Trade-dependent employment
Jobs supported or affected by international trade, including jobs in manufacturing and services.
Balance of trade versus balance of payments
The balance of trade compares exports with imports; the balance of payments covers a broader range of international receipts and payments.
Export participation by firm size
Many small and medium-size firms export, while a relatively small number of large firms account for much manufactured-export value.
Business planning for international conflict
Firms may prepare for disruptions with extra insurance, more inventory, or alternative sourcing plans.

Quiz questions

  1. Which description best defines global vision in business?Answer: Recognizing international opportunities, understanding foreign competition, and using global networks.
  2. A country exports goods worth $120 billion and imports goods worth $90 billion. What is its balance of trade?Answer: A $30 billion trade surplus.
  3. Which measure includes overseas investments, foreign aid, and international trade in goods and services?Answer: The balance of payments.
  4. Under floating exchange rates, what primarily determines a currency’s value?Answer: Supply and demand in currency markets.
  5. How can imported materials support production by a U.S. firm?Answer: They can provide inputs or components that the firm uses to make products.

Based on Introduction to Business 2e by Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

More in International business

All International business lessons
International businessIntra-Industry Trade, Economies of Scale, and Dynamic Advantage5 flashcards · 5 quiz questions · 4 gamesPlay free →International businessMultinational Corporations: Markets, Operations, Branding, and Collaboration5 flashcards · 5 quiz questions · 4 gamesPlay free →International businessPolitical, Cultural, and Economic Conditions in Global Markets5 flashcards · 5 quiz questions · 4 gamesPlay free →International businessExchange-Rate Systems, Policy Tradeoffs, and Currency Effects5 flashcards · 5 quiz questions · 4 gamesPlay free →International businessNatural, Tariff, and Nontariff Barriers to Trade5 flashcards · 5 quiz questions · 4 gamesPlay free →