International Business

Front 1

Balance of Payments

Back 1

the difference between money coming into a country and money leaving the country plus money flows from other factors such as tourism, foreign aid, military expenditures and foreign investment

Front 2

Balance of Trade

Back 2

the total value of nation's exports compared to its imports over a particular period

Front 3

Common Market

Back 3

A regional group of coutries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc.

Front 4

comparitive advantage theory

Back 4

Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products that it cannot produce as effectively or efficiently

Front 5

importing

Back 5

products/services from another country

Front 6

exporting

Back 6

Selling products/services to another country

Front 7

free trade

Back 7

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

Front 8

trade deficit

Back 8

An unfavorable balance of trade; occurs when the value of a country’s imports exceeds it exports

Front 9

licensing

Back 9

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

Front 10

franchising

Back 10

an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory in a specified manner

Front 11

contract manufacturing

Back 11

A foreign country’s production of private-label goods to which a domestic company then attaches its brand name or trademark; also called outsourcing

Front 12

joint ventures

Back 12

A partnership in which two or more companies (often from different countries) join to undertake a major project

Front 13

foreign direct investment

Back 13

The buying of permanent property and business in foreign nations

Front 14

world trade organziation

Back 14

The international organization that replaced the General Agreement on Tariffs and Trade, was assigned the duty to mediate trade disputes among nations

Front 15

outsourcing

Back 15

Assigning various functions, such as accounting, production, security, maintenance and legal work, to outside organizations

Front 16

dumping

Back 16

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