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61 Cards in this Set

  • Front
  • Back
International Trade
Exchange of goods and services to another country.
What are 3 ways that International Trade is done?
Trade Agreements, World Wide Markets, Geographical and Economics
What are two types of influences on trade?
Political and Competition
What is an export?
A good or service taken out of the country.
What is an import?
A good or service brought into the country.
4 fundamentals of trade.
A buyer, a seller, an export and an import.
What is balance of trade?
The difference between the exports and the imports.
What is a trade surplus?
More exports than imports.
What is a trade deficit?
More imports than exports.
What is competition?
Number of companies in the market, business cost and product differences.
What is business cost?
How much it costs to start a business.
How is product difference shown?
The ads, the brand name, emphasizing the ingredients or type of packaging.
What is international business?
Shipping and selling across international borders.
What is domestic business?
Making, buying and selling within home country.
What are 6 reasons that International Business is important?
Political relationships, new products, benefits economy, creates jobs, creates global dependency and profit expanison.
What are 4 things that affect trade?
Geography, Culture, Political and Economics.
Give 4 examples that geography has on trade.
Climate, seaways, natural resources, agricultural products.
Give 5 examples that cultural/social has on trade.
Social relationships, language barriers, custom differences, religion and education level.
Give 3 examples that political has on trade.
Type of government, political stability (Iraq has no political stability), government policies (Canada is less strict)
Give 4 examples that economics has on trade.
Types of currency, education level, technology, and types of industry.
What are the necessary skills for international market?
History, language, customs, geography, and study skills.
What is marketing?
Planning and execution of the idea.
How do you satisfy the objection of marketing?
Discover the need of the consumer, and satisfy that need.
What is a market?
Group of people who have the ability to buy your product.
What is a target market?
A certain group of people to whom you sell your production?
What is a demographic?
Race, gender, population, marital status, education level, birth rate, death rate etc;
What is a marketing mix?
4 different things that are controlled.
What is not controlled?
Social, economic, competition.
List the factors of production: (3)
Natural, capital and human.
What is scarcity?
Limited resources available.
What is GDP?
Gross Domestic Product. Output of goods that a country produces within its borders.
What is GNP?
Gross National Product. Total value of all goods and services produced by the resources of a country.
What is the equation for comparison per capita?
Total GDP/# of people in a country.
What is an absolute advantage?
A total corner on the market.
What is a comparitive advantage?
When a country has an absolute advantage on two or more products, and that country chooses to make one of them more cost effective.
Give 3 examples of absolute advantage with 3 countries.
South Afria= Diamonds
Chile= Copper
United States= Wheat
What is opportunity cost?
Giving up one good for another.
What is Consumer Price Index?
The measurement of increases in price.
What is inflation?
Increase in price of goods and services.
What is an unemployment rate?
Number or percentage of people unemployed.
What is an example of natural resources?
Water, oil, gold, timber etc;
What are the 3 factors of production?
Natural resources, infrastructure and capital.
Who makes most economic decisions?
What is privatization?
An industry that becomes private under a select few members.
What are the characterisitics of market economy?
Private property, profit motive, and competitive marketplace.
What is another term for Free Enterprise System?
What is a market economy?
Consumers have freedom of choice in the marketplace.
What is a mixed economy?
Blends government involvement and private consumer choice.
What is a command economy?
Markets are controlled completely by government.
What are the free trade zones?
Seaports, airports. Anything that can be imported duty-free.
What is the most favored nation status?
When a country can ship its goods into another country without having high tax rates.
What is free trade agreements?
No trade duties or barriers.
What is a common market?
Eliminates trade barriers and encourages investments while allowing workers to travel freely.
What is an economic community?
An organization of countries that unite to allow a free flow of product.
What is a direct barter?
Trade of products for another products. No money involved.
What is countertrade?
Exchange of products and services between companies. Money could be exchanged.
What are ways that governement encourages international business?
Free trade zones, granting most favored nation status, establishing free trade agreements, provide export insurance, reduce or eliminate trade barriers.
When is a duty paid in a free trade zone?
When the product leaves the zone.
What are 3 trade agreements that affect the United States?
NAFTA, Asian Free Trade Agreement (Japan, Taiwan, and Hong Kong) and European Union.
What is an example of countertrade?
Pepsi and Pizza Hut.
Why would a company use countertrade?
Don't want to receive product when it has a limited value.