Situations
The US sells corn to your country. What is this example called?
Import.
What is the definition of trade?
When you exchange something for something else or buying/selling goods and services from another country.
Cuba buys some soda from your country. What is this called?
Export.
What are imports?
Things you buy from other countries.
Which country is more likely to go to war with you? Country 1 that you sell pots of gold to and buy candy from, or Country 2 that you don't trade anything to.
Country 2.
What are exports?
Things you sell to other countries.
Switzerland sells Italy metals and energy for 700$ and buys machinery, wine, and cheese for 1000$. What is this called?
Trade deficit.
What is trade deficit?
When you buy more from other countries than you sell them.
Peru sells gold and unicorns to China for 100$ while they buy rainbows from China for 50$. What is this called?
Trade Surplus.
What are the three reasons to trade?
You don't have something and you want it, another country can make something better or cheaper than your country, and you are less likely to go to war with them.
What is trade surplus?
When you sell more to other countries than you buy.