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33 Cards in this Set
- Front
- Back
Absolute Advantage |
Country's ability to produce a good or service at a lower cost per unit than any other country can produce it |
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Embargo |
Government order to restrict or prohibit commerce with a specific country |
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Tariff |
Tax on imported goods used by governments to protect a domestic industry against foreign competition |
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Import quota
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Limiting the quantity of imports of a product to protect a domestic industry again foreign competition
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Devaluation |
Deliberate downward adjustment to a country's exchange rate relative to other currencies |
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Countertrading |
a form of international bartering in which several countries each trade goods or services for other goods or services |
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Free trade |
international commerce not restrained by government interference or regulation |
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Exchange Rate |
price for which the currency of one country can be exchanged for the currency of another country |
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Revenue tariffs |
taxes to raise money for the government |
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Protective tariffs |
import taxes to raise the retail price of imported products so that domestic goods are more competitively priced |
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Dumping |
selling products in a foreign country at lower prices than those charged in the producing country |
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Trade Protectionism
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the use of government regulations to limit the import of goods and services
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Balance of payments
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total flow of money into a country less the total flow out of that country over a specific period of time
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Balance of trade |
a nation's ratio of exports to imports |
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Trade surplus |
a positive balance of trade; a country's exports exceed its imports |
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Trade deficit |
a negative balance of trade; a country's imports exceed it exports |
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Licensing |
Business arrangement in which one company gives another, permission to manufacture its good in exchange for a fee (royalty) |
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Joint Venture |
Contractual agreement of 2 or more companies for the purpose of executing a specific business undertaking |
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Common Market |
Group formed by countries within a geographical region to promote free trade among its members |
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Foreign subsidary |
a partially or wholly owned company that is part of a larger company with facilities in another country |
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strategic alliance |
a long term relationship between 2 or more companies established to help each company build a competitive market advantage but do not share anything (risks, profits etc.) |
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multinational corporation |
corporation that manufactures and markets products in many different countries and has multinational stock ownership and management |
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Contract manufacturing |
production of goods by one firm under the label or brand of another firm |
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NAFTA |
trilateral treaty among Canada, Mexico, and the U.S. that encourages free trade among these countries |
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GATT |
general agreement on Tariffs and Trade; international treaty to facilitate international trade |
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WTO |
Worl Trade Organizations; international organization dealing with the rules of trade between nations |
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Importing |
bringing goods or services into one country from another |
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exporting |
the selling o goods and services produced in one country to another country |
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Franchising |
a contractual agreement whereby someone with a good idea for a business sells others the right to use the business name and sell a product or service in a given territory in a specific manner |
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contract manufacturing |
a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark |
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comparative advantage theory |
theory suggested by David Ricardo in the 19th century that states 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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1. Balance of trade 2. Balance of payments |
In measuring global trade, nations rely on what 2 key indicators? |
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Foreign Corrupt Practices Act of 1978 |
What Act prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts? |