Business and the international economy

Globalisation is the increasing integration of economies worldwide through increased trade, investment, and migration. A key reason for its growth is reduced trade barriers, making it easier and cheaper to import and export goods.

An MNC is a company that operates in multiple countries. These companies often have production facilities or retail outlets in several nations.

Imports are goods and services bought from other countries, while exports are goods and services sold to other countries. A country imports goods it cannot produce efficiently and exports goods it can produce efficiently.

A tariff is a tax imposed on imported goods. Tariffs increase the price of imported goods, making them less competitive and potentially reducing the volume of international trade.

Quotas are limits on the quantity of a good that can be imported into a country. They restrict the supply of foreign goods, raising prices and protecting domestic industries from competition.

Trade barriers are government-imposed restrictions on the free international exchange of goods or services. Examples include tariffs (taxes on imports) and quotas (limits on the quantity of imports).

Currency appreciation is an increase in the value of one currency relative to another. Currency depreciation is a decrease in the value of one currency relative to another.

The foreign exchange (FOREX) market is a global, decentralized marketplace where currencies are traded. Its primary function is to facilitate international trade and investment by enabling the exchange of currencies.