global interdependence

Global Interdependence

Trade

1) Visible trade/items: this is the same as tangible goods/items of what you can see and touch of exports and imports

2) Invisible trade/items: this is what we cant touch but are there e.g. services i.e banking, skills, insurance, communication, tourism.

Terms of Trade

• it refers to the relationship betweeen the price per unit of export and the price per unit of import
• it reflects the buying capacity of purchasing power of a country's exports

Balancing Trade

• this refers to the relationship between earnings from…