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22 Cards in this Set
- Front
- Back
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International Business |
the buying selling and trading of goods and services across national boundaries. |
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Absolute Advantage |
a monopoly that exists when a country is the only source of an item the only producer of an item or the most efficient producer |
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Comparative Advantage |
basis of most international trade when a country specializes in products that it can supply most efficiently or at a lower cost than it can produce other items |
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outsourcing |
transferring of manufacturing or other tasks to countries where labor and supplies are cheaper |
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exporting |
the sale of goods to other foreign markets |
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importing |
purchasing goods from foreign sources |
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Balance of Payment |
the difference between the flow of money in and out of a country |
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Barriers to International trade |
economic, legal, political, social, cultural, technological |
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Economic barriers |
Economic Development, Infrastructure, Exchange Rates |
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Economic Development |
LDC- Less Developed Countries; low per-capita income, less economically advanced, potentially huge profitable markets |
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Infrastructure |
the physical facilities that support economic activities |
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Exchange rates |
the ratio at which one nation's currency can be exchanged for another nation's currency |
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Ethical, Legal, and Political Barriers |
Complex Relationships, Different Laws, International Laws, Trade Restrictions, Changing Political Climates, Different Ethical Values |
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Tariffs and Trade Restrictions |
Import Tariff, Exchange Controls, Quota, Embargo, Dumping |
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Import Tariff |
a tax levied by a nation on goods imported into the country |
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Exchange Controls |
regulations that restrict the amount of currency that can be bought or sold |
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Quota |
a restriction on the number of units of a particular product that can be imported into a country |
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Embargo |
a prohibition on trade in a particular product |
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Dumping |
the act of a country or business selling products at less that what it costs to produce them |
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Political Barriers |
Cartel |
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Cartel |
a group of firms or nations that agrees to act as a monopoly and not compete with each other in order to generate a competitive advantage in world markets |
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Technological Barriers |
are creating global marketing opportunities; 10 nations outrank US in terms of subscribers to broadband internet access |
