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Definition
| All barriers of trade are removed. Each country determines its own trade policies. |
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| countries eliminating trade barriers and adopt common external trade policy. |
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| countries eliminating trade barriers, adopt common external trade policy, and allowing factors of production to move freely. |
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Definition
| removing trade barriers, adopt common currency, harmonizing tax rates and pursue common external trade policy. |
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Term
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Definition
| central political apparatus coordinating the economic, social and foreign policies. |
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| trade created with free trade area due to replacement of high cost. |
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Definition
| regional economical union of most European countries. |
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| signed in 1957 to establish the EU. |
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| proposing, implementing and monitoring compliance with EU legislation. |
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| Ultimate decision making body of the EU. |
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Term
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| 732 members directly elected by member states' population. |
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Term
| European Court of Justice |
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Definition
| 1 judge from each member state of the EU and is the supreme court of appeals. |
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Term
| Single European Act of 1987 |
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Definition
| committed members to establish a single market by 1992. |
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Definition
| treaty in 1991 to adopt a common currency by 1999. |
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Definition
| free trade agreement among Mexico, Canada and U.S. in 1994. |
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| free trade pact between Brazil, Argentina, Paraguay, Uruguay and Venezuela in 1988. |
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Definition
| attempt at regional economic integration among Asian countries. |
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Term
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Definition
| increase multilateral economic cooperation between nations bordering the Pacific Ocean. |
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Definition
| risk that occurs in exchange rate that will hurt profitability of a business deal. |
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Term
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Definition
| rate at which foreign exchange dealer converts currency on any particular day. |
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Term
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Definition
| when 2 parties agree to exchange currency and execute a deal at some point in the future. |
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Term
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Definition
| The simultaneous purchase and sale of a given amount of foreign exchange for 2 different value dates. |
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Term
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Definition
| purchase of securities in 1 market for immediate resale in another to profit from price discrepancy. |
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Term
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Definition
| principle that in competitive markets free of transportation costs and barriers. |
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Term
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Definition
| nominal interest rates in each country equal the rate of return/inflation |
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Term
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Definition
| risk due to fluctuation in foreign exchange values. |
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Term
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Definition
| risk associated with reporting consolidated results and balance sheets. |
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Term
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Definition
| exchange rate for converting one currency into another is continuously adjusted depending on supply and demand. |
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Term
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Definition
| fixed exchange rate determined by the reference currency exchange rate. |
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Term
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Definition
| exchange rate for converting one currency into another is set at a constant rate. |
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Term
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Definition
| country's currency is nominally allowed to float freely against other currencies. |
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Term
| Balance of Trade Equilibrium |
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Definition
| income a country's residents earn from exports equals amount they pay for imports. |
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Term
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Definition
| A country's currency authority that holds reserves of foreign currency equal at the fixed exchange rate. |
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Term
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Definition
| when people behave recklessly because they know they will be saved if things go wrong. |
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Term
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Definition
| performing activities that increase the value of goods or services to consumers. |
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Term
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Definition
| skills within a firm that competitors cannot easily match or imitate. |
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Term
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Definition
| attempting to simultaneously achieve low costs through location, economies of scale and learning effects. |
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Term
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Definition
| when a firm takes products first produced for the domestic market and sells them internationally with only minimal local customization. |
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Definition
| cooperative agreement between competitors for the benefit of all companies. |
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Term
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Definition
| advantages occurring due to early entry into a new market. |
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Term
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Definition
| A project in which a firm agrees to set up an operating plant for a foreign client and hand over the key when the plant is fully operational. |
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Term
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Definition
| rights to intangible property for a specific period. |
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Term
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Definition
| licensing where franchiser not only sells intangible property to the franchisee but requires franchisee to abide by strict rules as to how it does business. |
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Term
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Definition
| establishing a firm that is jointly owned by two or more independent firms. |
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Definition
| subsidiary in which the firm owns 100% of the stock. |
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Term
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Definition
| Japanese trading houses that seek to make export sales for their affiliated companies. |
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Term
| Export Management Company |
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Definition
| Export specialists that act as an export marketing or international department for their client firms. |
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Term
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Definition
| documents issued by a bank indicating they will make payments upon presentation of particular documents. |
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Term
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Definition
| payable to exporter upon presentation to the drawee |
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Term
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Definition
| allows for a delay in payment to set future day |
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Term
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Definition
| a document issued to an exporter as a receipt/contract |
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Term
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Definition
| independent agency of the U.S. government to provide financial aid that will facilitate exports and imports. |
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Term
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Definition
| trade of goods and services for other goods/services. |
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Term
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Definition
| when a firm agrees to purchase a certain amount of materials back from a country. |
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Term
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Definition
| choices about 4 P's of marketing. |
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Term
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Definition
| identifying distinct groups of consumers whose purchasing behavior differs from others. |
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Term
| Country of Origin Effects |
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Definition
| extent to which a place of products manufacture influences its evaluations in the market. |
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Term
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Definition
| emphasizes personal selling to potential customers rather than mass media advertising. |
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Term
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Definition
| depends on mass media to communicate the marketing message to potential customer. |
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Term
| Price Elasticity of Demand |
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Definition
| measure of how responsive demand for a product is to changes in price. |
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Term
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Definition
| pricing products below fair market value to drive weaker competitors out of the market. |
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Term
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Definition
| pricing strategy in 1 market may have an impact on rival's pricing strategy in another market. |
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Term
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Definition
| aggressive pricing designed to increase volume. |
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