Business Ch. 3

Front 1

Importing

Back 1

Buying products from another country.

Front 2

Exporting

Back 2

Selling products to another country.

Front 3

Free trade

Back 3

The movement of goods and services among nations without political or economic barriers.

Front 4

Comparative advantage Theory

Back 4

Theory that states that a country should sell to other countries those products that is produced most effectively and efficiently, and buy from another countries those products that it cannot produce as effectively or efficiently.

Front 5

Absolute advantage

Back 5

The advantage that exists when a country produces a specific product more efficiently than all other countries.

Front 6

Balance of trade

Back 6

The total value of a nation's exports compared to its Imports measured over a particular period.

Front 7

Trade Surplus

Back 7

A favorable balance of trade occurs when a value of a country's exports exceeds that of its Imports.

Front 8

Trade deficit

Back 8

An unfavorable balance of trade occurs when the value of a country's Imports exceeds that of its exports.

Front 9

Balance of payments

Back 9

The difference between money coming in to a country from exports and money leaving the country for imports plus money flows from other factors such as tourism foreign aid military expenditures and foreign investment.

Front 10

What are two of the main arguments favoring the expansion of us businesses into Global markets? What are comparative advantage, and what are some examples of this concept at work in the United States? How are a nation's balance of trade and balance of payments determined? What is meant by the term dumping in global trade?

Back 10

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Front 11

Dumping

Back 11

Selling products in a foreign country at lower prices than those charged in the producing country.

Front 12

Licensing

Back 12

A global strategy in which a firm the licensure allows a foreign company the licensee to produce its product in exchange for a fee a royalty.

Front 13

Contract Manufacturing

Back 13

A foreign company's production of private-label goods to which a domestic company that attaches its brand name or trademark, part of a broad category of Outsourcing.

Front 14

Joint venture

Back 14

A partnership in which two or more companies often from different countries joined to undertake a major project.

Front 15

Strategic Alliance

Back 15

A long-term partnership between two or more companies established to help each company build competitive market advantages.

Front 16

Foreign direct investment FDI

Back 16

The buying of permanent property and businesses in foreign Nations.

Front 17

Foreign subsidiary

Back 17

A company owned in a foreign country by another company called the parent company.

Front 18

Multinational corporation

Back 18

An organization that manufactures and markets products in many different countries and has multinational dog ownership and Multinational management.

Front 19

Sovereign wealth funds (SWFs)

Back 19

Investment funds controlled by governments holding investment stakes in foreign companies.

Front 20

Exchange rate

Back 20

The value of one nation's currency relative to the currencies of other countries.

Front 21

Devaluation

Back 21

Lowering the value of a nation's currency relative to the other currencies.

Front 22

Countertrading

Back 22

A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.

Front 23

What are four major hurdles to successful global trading? What does ethnocentricity mean, and how can it affect global success? How would a low value of the dollar affect US exports? What does the Foreign Corrupt Practices Act prohibit?

Back 23

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Front 24

Tariff

Back 24

A tax imposed on Imports.

Front 25

Import quota

Back 25

A limit on the number of products in certain categories that a nation can import.

Front 26

Embargo

Back 26

A complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.

Front 27

General agreement on tariffs and trade G ATT

Back 27

A 1948 agreement that established an international forum for negotiating Mutual reductions in trade restrictions.

Front 28

World Trade Organization WTO

Back 28

The international organization that replaces the general agreement on tariffs and trade and was assigned the duty to mediate trade disputes among nations.

Front 29

Common Market

Back 29

Original group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange, also called a trading Bloc an example is the European Union.

Front 30

North American Free Trade Agreement NAFTA

Back 30

Agreement that created a free-trade area among the United States Canada and Mexico.

Front 31

What are the advantages and disadvantages of trade protectionism and/or tariffs? What is the primary purpose of the WTO? What is the key objective of a common market like the EU? What three nations comprise NAFTA? I think so just call him this

Back 31

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Front 32

answer is laws.

Back 32

Front 33

Physical and environmental forces

Back 33