1
Q
define ‘trade balance’
A
difference between its total value of exports and total value of imports
2
Q
define ‘trade surplus’
A
exports > imports
3
Q
define ‘trade deficit’
A
exports < imports
4
Q
define ‘bilateral trade balance’
A
difference between exports and imports between two countries
5
Q
what is ‘horizontal FDI’
A
when a firm from one industrial country owns a company in another industrial country
6
Q
what is ‘vertical FDI’
A
firm from industrial country owns plant in a developing country
7
Q
what is the principal reason firms shift production to developing countries?
A
lower wages
