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Balance of trade is the difference between a country’s total exports and total imports.This is so important because it shows what a country is producing and buying.

Exchange RateExchange Rate- Value of currency in one

country compared with the value in another

Exchange currency with:Mexico- I dollar=14 pesosRussia- 1 dollar=44 rublesJapan- 1 dollar=117 yen

Factors Effecting Factors Effecting Exchange RateExchange Rate

The country’s balance of payments

Economic conditions Political Stability

GeographyGeographyGeography is important when

doing business internationally because very hot weather can limit types of crops. Also a nation with many rivers or oceans can make foreign trade easier. Without natural recourses some countries must receive imports.

Cultural InfluenceCultural InfluenceCulture is the behaviors of

customs and values of a society. The factors that can make business hard is the difference of religion, language, values, customs, and social relationships

U.S. Balance Of TradeU.S. Balance Of TradeWith:Australia- 11,874.4 India- -7,095.4 China- -266,332.7Europe--107,239.9