This answer explains key terms in economics such as imports, exports, protectionism, exchange rates, and their impact on economies, trade deficits, and surpluses, along with examples and analysis of currency fluctuations in Mexico and Brazil.
Imports: When individuals or businesses buy goods or services produced in a different country.
Exports: When individuals or businesses produce and sell goods or services in a different country.
Protectionism: The practice of limiting trade and foreign goods to shield local industries from foreign competition.
World Trade Organization: Establishes rules of trade between nations to ensure trade flows smoothly.
Exchange Rate: The value of one country's currency relative to another.
Appreciation: When a country's currency increases in value relative to a foreign currency.
Depreciation: The loss of value of a country's currency with respect to other foreign currencies.
Trade Surplus vs. Trade Deficit: A trade surplus occurs when a country exports more than it imports, while a trade deficit occurs when a country imports more than it exports.
Impact of Currency Appreciation on Exports: If a country's currency appreciates, its exports may decrease because its products become more expensive for foreign buyers.
Recording Stock Purchase in the U.S.: If a Chinese businesswoman buys Tesla stock on the NYSE, it would be recorded in the financial account for the U.S. because it represents a financial investment from abroad.
Currency Impact on Mexico and Brazil: Due to the COVID-19 pandemic, currencies in Mexico and Brazil likely depreciated initially, affecting economic growth and trade due to reduced global demand for commodities.
Timing of Currency Exchange: Converting USD to Mexican pesos would have been better in December 2019 if the peso had not significantly depreciated by April 2020.
https://brainly.com/question/43883215