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Definition
| Buying products from another country |
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Definition
| Selling products to another country. |
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| The movement of goods and services among nations without political or economic barriers. |
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| Comparative Advantage Theory |
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Definition
| Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently |
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Definition
| The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries |
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| The total value of a nation’s exports compared to its imports measured over a particular period |
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| An unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports |
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Definition
| The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment |
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Definition
| Selling products in a foreign country at lower prices than those charged in the producing country |
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Definition
| A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (royalty). |
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Definition
| A foreign country’s production of private-label goods to which a domestic company then attaches its brand name or trademark |
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Definition
| A partnership in which two or more companies (often from different countries) join to undertake a major project |
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Definition
| A long-term partnership between two or more companies established to help each company build competitive market advantages |
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Term
| Foreign Direct Investment |
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Definition
| The buying of permanent property and businesses in foreign nations |
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Definition
| A company owned in a foreign country by another company (called the parent company) |
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Term
Multinational Corporation
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Definition
| An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management |
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Definition
| The value of one nation’s currency relative to the currencies of other countries |
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Definition
| Lowering the value of a nation’s currency relative to other currencies |
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Definition
| A complex form of bartering in which several countries may be involved, each trading goods for goods or services or services |
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Definition
| The use of government regulations to limit the import of goods and services |
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Definition
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Definition
| A limit on the number of products in certain categories that a nation can import |
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Definition
| A complete ban on the import or export of a certain product or stopping all trade with a particular country |
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Term
| General Agreement On Tariffs and Trade (GATT) |
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Definition
| A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions |
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Term
World Trade Organization (WTO)
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Definition
| The international organization that replaced the GATT, and was assigned the duty to mediate trade disputes among nations |
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Definition
| A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. An example is the European Union |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
| Agreement that created a free-trade area among the United States, Canada, and Mexico |
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Term
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Definition
| Assist in negotiating and establishing the trading relationships desired |
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Definition
| An arrangement whereby someone with a good idea for a business sells the right to use the business name and sell a product or service to others in a given territory |
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Term
| International Joint Ventures |
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Definition
Benefits: - Shared technology and risk
- Shared marketing and mgm't expertise
- Entry into markets where foreign companies are often not allowed unless goods are producted locally
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Definition
| The company that owns the company located in the foreign country |
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Definition
| The country where the subsidary is located |
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Definition
| Should relations with a host country falter, the firm's assets could be taken over by the foreign government |
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Term
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Definition
Some physical presence in different nations Ex. Multinational Corporation |
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Term
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Definition
| A dollar would be traded for more foreign currency than previously |
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Definition
| Currencies "float" according to the supply and demand in the global market for the currency |
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Definition
| Exchange of merchandise for merchandise or service for service with no money involved |
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Definition
| A nation sells more goods to other nations than it bought from them |
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Term
| Protective Tariffs (Import Taxes) |
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Definition
| Designed to raise the retail price of imported products so that domestic goods are more competitively priced |
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Definition
| Not as specific or formal as tariffs, import quotas, and embargoes but can be as detrimental to free trade |
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Definition
| Build corporate families that forge semipermanent ties with suppliers, customers, and distributors with full support of the government |
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Definition
| The shift in outsourcing manufacturing and services from domestic businesses to primarily low-wage markets |
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