ECN 204 Lecture Notes - Japanese Yen, Real Interest Rate, Tim Hortons
Document Summary
Closed economy: an economy that does not interact with other economies in the world. Open economy: an economy that interacts freely with other economies around the world. Exports: goods and services that are produced domestically and sold abroad. Imports: goods and services that are produced abroad and sold domestically. Net exports: the value of nation"s exports minus the value of its imports; also called the trade balance. Trade balance: the value of a nations exports minus the value of its imports; also called net exports. Trade surplus: an excess of exports over imports. Trade deficit: an excess of imports over exports. Balanced trade: a situation in which exports equal imports. Factors that influence a country"s exports, imports and net exports. Tastes of consumers for domestic and foreign goods. Prices of goods at home and abroad. Exchange rates at which people can use domestic currency to buy foreign currencies. Cost of transporting goods from country to country.