The International Trade and Capital Flows (Economics)

Recall cards on international trade and capital flows. Measuring trade balances: the balance of trade, the merchandise trade balance, the current account balance, unilateral transfers, traded services, and investment income. Trade balances in context, scaled to GDP. Trade balances and flows of financial capital: net borrowing and lending, and the current and financial accounts of the balance of payments. The national saving and investment identity, S + (M - X) = I + (G - T), and the twin deficits. The pros and cons of trade deficits and surpluses, productive investment versus consumption, and capital flight. The difference between a country's level of trade and its trade balance.