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29 Cards in this Set
- Front
- Back
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international business |
all business activities that involve exchanges across national boundaries |
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absolute business |
the ability to produce a specific product more efficiently than any other nation |
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comparative advantage |
the ability to produce a specific product more efficiently than any other product |
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exporting |
selling and shipping raw materials or products to other nations |
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importing |
purchasing raw materials or products in other nations and bringing them into one's own country |
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balance of trade |
the total value of a nation's exports minus the total value of its imports over some period of time |
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trade deficit |
a negative balance of trade |
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balance of payments |
the total flow of money into a country minus the total flow of money out of that country over some period of time |
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import duty (tariff) |
a tax leveled on a particular foreign product entering a country |
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dumping |
exportation of large quantities of a product at a price lower than that of the same product in the home market |
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nontariff barrier |
a nontax measure imposed by a government to favor domestic over foreign suppliers |
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import quota |
a limit on the amount of a particular good that may be imported into a country during a given period of time |
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embargo |
a complete halt to trading with a particular nation or in a particular product |
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foreign-exchange control |
a restriction on the amount of a particular foreign currency that can be purchased or sold |
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currency devaluation |
the reduction of the value of a nation's currency relative to the currencies of other countries |
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General Agreement on Tariffs and Trade (GATT) |
an international organization of 159 nations dedicated to reducing or eliminating tariffs and other barriers to world trade |
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World Trade Organization (WTO) |
powerful successor to GATT that incorporates trade in goods, services, and ideas |
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economic community |
an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies |
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licensing |
a contractual agreement in which one firm permits another to produce and market its products and use its brand name in return for a royalty or other compensation |
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letter of credit |
issued by a bank on request of an importer stating that the bank will pay an amount of money to be stated beneficially |
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bill of lading |
document issued by a transport carrier to an exporter to prove that merchandise has been shipped |
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draft |
issued by exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank |
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strategic alliances |
a partnership formed to create competitive advantage on a worldwide basis |
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trading company |
provides a link between buyers and sellers in different countries |
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countertrade |
an international barter transaction |
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multinational enterprise |
a firm that operates on a worldwide scale without ties to any specific nation or region |
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Export-Import Bank of the United States |
an independent agency of the U.S. government whose function is to assist in financing the exports of American firms |
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multinational development bank (MDB) |
an internationally supported bank that provides loans to developing countries to help them grow |
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International Monetary Funds (IMF) |
an international bank with 188 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits |
