Chapter 3 Mgt

Front 1

protectionism

Back 1

practice of domestic business against foreign competition

Front 2

business practice laws

Back 2

laws or regulations governing business practices in given countries

Front 3

exchange rate

Back 3

rate at which the currency o one nation can be exchanged for the currency of another country

Front 4

absolute

Back 4

advantagethe ability to produce something more efficienty than any other country can

Front 5

international firm

Back 5

form that conducts a significant portion of its business in foregin countries

Front 6

licensing arrangement

Back 6

arrangemen tin which firms choose foreign individuals or organizations to manufacture or market their products in another country

Front 7

importer

Back 7

firm that buys products in foregin markets and then imports them for resale in its home country

Front 8

export

Back 8

produect made or grown domestically but shipped and sold abroad

Front 9

forgein direct investment (FDI)

Back 9

arrangement in which a firm buys or establishes tagible assents in another country

Front 10

strategic alliance (or joint venture)

Back 10

arrangement in which a company finds a foreign partner to contribute approx half of the resources needed to establish and operate a new business in the partner's country

Front 11

tariff

Back 11

tax levied on imported products

Front 12

balance of payments

Back 12

flow of all money in or out for a country

Front 13

exporter

Back 13

firm that distributes and sells products to one or more foreign countries

Front 14

dumping

Back 14

practice of selling a products abroad for less than the cost of production

Front 15

local content law

Back 15

law requiring that products sold in a particualr country be at least partly made there

Front 16

comparative advantage

Back 16

the ability to produce some products more eficiently than others

Front 17

national competitive advantage

Back 17

international competitive advantage stemming from a combination of factor conditions, demand conditions, related ands upporting industries, and firm strategies, structures, and rivalries

Front 18

branch office

Back 18

foregin office set up by an international or multinational firm

Front 19

embargo

Back 19

gov't order banning exportation and/or importation of a particular product or all products from a particular country

Front 20

subsidy

Back 20

gov't payment to help domestic buiness compete with foreign firms

Front 21

globalization

Back 21

process by which the world economy is becoming a single interdepenent system

Front 22

per capita income

Back 22

average income per person in a country

Front 23

cartel

Back 23

assocaition of producers whose purpose is to control supply and prices

Front 24

multinational firm

Back 24

firm that designs, produces, and markets products in many nations

Front 25

quota

Back 25

restricion on the number of products of a certain type that cn be imported into a country

Front 26

independent agent

Back 26

foregin individual or organization that agrees to represent an exporter's interests

Front 27

trade surplus

Back 27

situation in which a country's exports exceed its imports, creating a positive balance of trade

Front 28

royalty

Back 28

payment made to a license holder in return for the right to market the licenser's product

Front 29

import

Back 29

product made or grown abroad but sold domesticaly

Front 30

balance of trade

Back 30

economic value of all products a country imports minus the economic value of all products it exports

Front 31

trade deficit

Back 31

situation in which a country's imports exceed its exports, creating a negative balance of trade