International aspects

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    International aspects

    Definition

    Exchange rate: The price of one’s currency in terms of another currency

     

    Foreign exchange market: The market where currencies are bought and sold.

     

    Exchange control: Limits on the amount of foreign currency available to importers, which

    consequently limit imports

     

    Appreciation: The rise in value of a currency against others. Exports will become more expensive

    abroad and imports cheaper at home.

     

    Depreciation: The fall in value of a currency against others. Exports will become cheaper abroad

    and imports expensive at home.

     

    Devaluation: Depreciation brought about the government, normally by a government which fixes

    the value of its currency.

     

    Exports: The movement of goods or commodities out of the country.

     

    Imports: The movement of goods or commodities into the country.

     

    Protectionism: Policy of protecting domestic industries against foreign competition by means of

    tariffs, subsidies, import quotas, or other handicaps placed on imports.

     

    Free trade: A system of trade policy that allows traders to trade across national boundaries

    without interference from the respective governments.

     

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