1-The basic idea ofinternational trade and investment is simple: each country produces goods or services that can beeither consumed at home or exported to other countries.2-The main difference between domestic trade and international trade is the use of foreign currencies to pay for the goods and services crossing international borders.3-Japanese video cassette recorder is paid for in German marks in Berlin, and German cars are paid for inU.S. dollars in Boston. Indian tea, Brazilian coffee, and American films are sold around theworld in currencies as diverse as Turkish liras and Mexican pesos.4-Trade andinvestment is a two-way street that, with a minimum of trade barriers, usually makes everyonebetter off.In a interlinked global economy, consumers are given the opportunity to buy the best products atthe best prices.5-The Great Depression of the 1930s, for example, spread around the world when the UnitedStates decided to erect trade barriers to protect local producers.
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