Unit 7: Lesson 45 - International Trade: How Do We Measure Trades Across Political Borders?

Many popular misconceptions evolve from reading balance of payments reports. Newspaper stories warn us of the perils of a deficit in the U.S. trade balance and a surplus in the Chinese trade balance of payments reports and help them draw accurate conclusions about the economy from these reports.

Concepts:

• Balance of Payments
• Surplus
• Capital Account
• Capital
• Current Account

• Standard #5: Trade
• Standard #6: Specialization