Globalization: The process by which businesses, technologies, and ideas spread across national borders, leading to increased interdependence among countries.
Balance of Trade: The difference between the value of a country's exports and imports. A positive balance indicates a trade surplus (exports exceed imports), while a negative balance suggests a trade deficit (imports surpass exports).
Exchange Rate: The rate at which one currency can be exchanged for another. Fluctuations in exchange rates impact international trade by affecting the cost of importing and exporting goods.