Intro To Business Chapter 3

Front 1

1. A long-term partnership between two or more companies, a_____________ help each company build competitive market advantages.

Back 1

Strategic Alliance

Front 2

2. A tax known as a __________is imposed on imports.

Back 2

Tariff

Front 3

3. The practice of selling products in foreign countries at lower prices than you charge for the

same products in the producing country is known as________.

Back 3

Dumping

Front 4

4. A country has a(n)______________ when it has a monopoly on the production of a specific product or is able to produce it more efficiently than all other countries.

Back 4

Absolute advantage

Front 5

5. 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 is the____________.

Back 5

Balance of payment

Front 6

6. A(n)__________is a complete ban on the import or export of a certain product or when

all trade with a particular country has been stopped.

Back 6

Embargo

Front 7

7. When there is a limit on the number of products in certain categories that can be imported,a(n)___________ has been established

Back 7

Import quota

Front 8

8. An unfavorable balance of trade, or________ occurs when the value of a country's imports exceeds that of its exports.

Back 8

Trade deficit

Front 9

9. A nation's____________ is its ratio of exports to imports

Back 9

Balance of trade

Front 10

10. The_____________ is the value of one currency relative to the currencies of other countries.

Back 10

Exchange rate

Front 11

11. A country is involved in ________ when it is buying products from another country.

Back 11

Importing

Front 12

12. In a___________________a partnership has been formed in which two or more companies,

often from different countries, have joined to undertake a major project.

Back 12

Joint venture

Front 13

13. A global strategy known as___________ is one in which a firm allows a foreign company to produce its product in exchange for a fee.

Back 13

licensing

Front 14

14. The European Union is an example of a__________ a regional group of countries that have no internal tarrtfs, a common external tariff and a coordination of laws to facilitate exchange between countries. It is also known as a trading bloc.

Back 14

common market

Front 15

15. A company is involved in__________ when it is selling products to another country.

Back 15

exporting

Front 16

16. An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management is a(n)__________.

Back 16

multinational corporation

Front 17

17. The theory of _____________asserts that a country should sell to other countries those

products that it produces most effectively and efficiently, and buy from those other countries

those products that it cannot produce as effectively and efficiently

Back 17

comparative advantage theory

Front 18

18. Also known as outsourcing,_______ occurs' when a foreign country produces private-label goods to which a domestic company then attaches its brand name or trademark.

Back 18

contract manufacturing

Front 19

19. Lowering the value of a nation's currency relative to other currencies is known as_____.

Back 19

devaluation

Front 20

20. There is___________ when the movement of goods and services among nations occurs

without political or economic obstruction.

Back 20

Free trade

Front 21

21. The use of government regulations to limit the import of goods and services is considered to be , __________which advocates believe will allow domestic produceis to survive and grow, producing more jobs.

Back 21

trade protectionism

Front 22

22. A complex form of bartering known as _________ occurs when several countries each trade goods for goods or services for services.

Back 22

counter trading

Front 23

23. Many countries today are involved in_______ which is the buying of permanent propety and businesses in foreign nations.

Back 23

foreign direct investment

Front 24

24. A________________ is a company that is owned in a foreiSr country by another company called the parent company.

Back 24

foreign subsidiary

Front 25

25. This organization known as the___________ replaced the GATT agreement and was assigned the dufy to mediate trade disputes among nations.

Back 25

World Trade Organization(WTO)

Front 26

26. The agreement known as the________ created a free trade agreement between the United States, Canada" and Mexico.

Back 26

North American Free trade agreement(NAFTA)

Front 27

27. The agreement signed in 1948 called the ___________ established an international forum for negotiating mutual reductions in trade restrictions.

Back 27

General agreement on Tariff and trade(GATT)