Advanced Placement Macroeconomics studying national and global economic systems.
Countries trade to access goods and services they can't efficiently produce themselves. Trade increases variety, lowers costs, and promotes innovation.
A nation has a comparative advantage if it can produce a good at a lower opportunity cost than another nation. This principle guides international specialization and trade.
Exchange rates determine how much one currency is worth relative to another. They affect the prices of imports and exports and can fluctuate due to market forces or government intervention.
This is a record of all economic transactions between a country and the rest of the world, including trade, investment, and transfers.
Tariffs, quotas, and subsidies can restrict or encourage trade, affecting global economic relationships.
The US imports electronics from Asia because it's cheaper than producing them domestically.
A strong dollar makes American exports more expensive for foreign buyers.
International trade allows countries to specialize, trade, and grow, but comes with policy challenges.