1. ECONOMIC INTERDEPENDENCE & WORLD TRADE
BUS Explain economic interdependence
BUS Describe problems and benefits of world trade

2. Economic Interdependence
Occurs when countries rely on one another for the goods and services that its citizens enjoy

3. TERMS
International Business- all of the business activities necessary for creating, shipping, and selling goods and services
Imports-goods and services purchased from other countries
Exports-goods and service sold to other countries

4. WORLD TRADE ADVANTAGES
Increased competition regulates the cost of goods and services
Greater variety of goods and services
Increased tax revenues
Political alliances with other countries
Increase in jobs
Improvement in product quality

5. WORLD TRADE DISADVANTAGES
Increased competition effecting cost of goods and services
Decreased tax revenue from loss of in-country manufacturing
Increased unemployment