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29 Cards in this Set

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  • Back
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International Business
All business activities that involve exchanges across national boundaries
Exchanges across national boundaries
Absoulute Advantage
The ability to produce a specific product more efficiently than any other nation
Production more efficiently than any other nation
Comparative Product
Within a nation, the ability to produce a specific product more efficiently than any other product
Specific product production
Exporting
Selling and shipping raw materials or products to other nations
Selling and shipping
Importing
Purchasing raw materials or products in other nations and bringing them into one's own country
Purchase of raw materials or products
Balance of Trade
The total value of a nation's exports minus the total value of its imports over some period of time
total value of exports minus total value of imports
Trade Deficit
A negative balance ot trade
Negative balance
Balance of Payments
The total flow of money into the country minus the total flow of money out of the country over some period of time.
Money in minus money out
Import Duty (Tariff)
A tax levied in a particular foreign product entering a country
A tax levied
Dumping
Exportation of large quantities of a product at a price lower than that of the same product in the home market
Exporation of large quantities of a product at a price lower
Non-Tariff Barrier
A non tax measure imposed by a government to favor domestic over foreign suppliers
A non tax measure to favor
Import Quota
A limit on the amount of a particular good that may be imported into a country during a given period of time
Limit on the amount of a particular good
Embargo
A complete halt to trading with a particular nation or in a particular product.
A complete halt to trading
Foreign Exchange Control
A restriction on the amount of a particular foreign exchange currency that can be purchased or sold
A restriction on the amount
Currency Devaluation
The reduction of the value of a nation's currency relative to the currencies of other countries
The reduction of the value of a nation's currency
General Agreement on Tariffs and Trade (GATT)
An international organization of 132 nations dedicated to reducing or eliminating tariffs and other barriers to world trade
An international organization of 132 nations
World Trade Organization (WTO)
Powerful successor to GATT that incororates trade in goods, services and ideas.
Successor to GATT
Economic Community
An organization of nations formed to promote the free movement of resources and products among its memebers and to create common economic policies.
An organization of nations formed to promote the free movement
Licensing
A contractural agreement in which one firm permits another to use its brand name in exchange for a royalty or other compensation
Agreement for brand name use
Letter of Credit
Issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary
From a bank stating payment will be made
Bill of Lading
Issued by the transport carier to the exporter to prove merchandise has been shipped.
Proof of shipment
Draft
is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise thus guaranteeing payment once accepted by the importer's bank.
Issued by exporter's bank to importer's bank
Strategic Alliance
A partnership formed to create competitive advantage on a world wide basis
Partnership formed
Trading Company
Provides a link between buyers and sellers in different countries
Provides a link
Countertrade
An international barter transaction
International transaction
Multi National Enterprise
A firm that operates on a worldwide scale, without ties to any specific nation or region
Worldwide operation without ties
Export - Import Bank of The United States
An independent agency of the U.S. Government whose function it is to assist in financing the exports of American firms
Independent agency of the U.S. government
Multi National Enterprise
A firm that operates on a worldwide scale, without ties to any specific nation or region
Worldwide operation without ties
Multi-lateral Development Bank (MDB)
An internationally supported bank that provides loans to developing countries to help them grow
Helping countries grow