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