Term
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Definition
| Buying products from another country |
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Term
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Definition
| Selling products to another country |
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Term
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Definition
| The movement of goods and services among nations without political or economic barriers |
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Term
| 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 efficiently and buy from countries products that it produces less efficiently |
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Term
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Definition
| The advantage that exists when a country has a monopoly on producing a specific product or is able to more efficiently produce it than other countries |
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Definition
| The total value of a nations exports compared to its imports over a particular period. |
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Definition
| A favorable balance of trade. Exports>Imports |
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Term
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Definition
| An unfavorable balance of trade. Imports>Exports |
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Term
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Definition
| The difference between money coming in (exports) vs money leaving (imports) plus factors such as tourism, foreign aid, military, foreign investment |
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Term
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Definition
| Selling products in a foreign country for lower prices than charged in the producing country |
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Definition
| A global strategy in which a firm allows a foreign company to produce its product for a royalty/fee |
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Definition
| A foreign country's production of private label goods to which a domestic company then attaches its brand/trademark. Type of outsourcing |
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Definition
| A partnership in which two or mor companies join together for a major project |
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Term
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Definition
| A long term partnership between two or more companies established to help each company build a competitive advantage |
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Term
| Foreign Direct Investment (FDI) |
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Definition
| The buying of permanent property and businesses in foreign nations |
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Term
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Definition
| A company owned in a foreign company by another company (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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Term
| Sovereign Wealth Fund (SWF) |
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Definition
| Investment funds controlled by governments holding large stakes in foreign companies |
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Term
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Definition
| The value of one nations currency relative to other currencies |
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Term
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Definition
| Lowering the value of a nations currency relative to others |
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Term
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Definition
| A complex form of bartering in which several countries may be involved, each trading goods for goods, services for services |
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Term
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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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Term
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Definition
| A limit on the number of products in certain categories that can be imported |
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Term
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Definition
| A complete ban on the import/export of a certain product or a complete stop of trade with another 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 replace GATT and assigned duty to mediate trade disputes between nations |
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Term
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Definition
| A regional group of countries that have common external tariffs, no internal tariffs (ex. European Union) |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
| Agreement that created free trade between USA, Canada, and Mexico |
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