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.