BUSI 2202U Chapter Notes - Chapter 7: Asean Free Trade Area, Juniper Networks, Gross Domestic Product
Document Summary
Not all trade involves the exchange of money for goods or services. An estimated 15 to 20 percent of world trade involves countertrade, the practice of using barter rather than money for making global sales. Countertrade is popular with many eastern european nations, russia, and asian countries. A global perspective on world trade views exports and imports as complementary economic flows: a country"s imports affect its exports and exports affect its imports. As the exports of one country increase, its national output and income rise, which, in turn, leads to an increase in the demand for imports. Trade feedback effect is a country"s imports affect its exports and exports affect its imports. Gross domestic product (gdp), the monetary value of all goods and services produced in a country during one year. The difference between the monetary value of a nation"s exports and imports is called the balance of trade.
