Details

Title: International Business

Description: Chapter 7 Vocabulary

Total Flash Cards: 12

Created: 11/22/2011 05:28:01

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Cards in this set:

Term
International Trade
 Definition
Consists of the exchange of goods and services by different countries
Term
absolute advantage
 Definition
the ability to produce more of a good than another producer with the same quantity of inputs
Term
law of comparative advantage
 Definition
states that producers should produce the goods they are most efficient at producing and purchase from others the goods they are less efficient at producing
Term
exports
 Definition
goods and services that are sold abroad
Term
imports
 Definition
goods and services that are purchased abroad
Term
balance of trade
 Definition
the difference between the value of the goods a country exports and the value of the goods it imports
Term
tariff
 Definition
a tax on imports
Term
quota
 Definition
restrictions on the quantity of a good that can enter a country
Term
embargo
 Definition
a total ban on the import of a good from a particular country
Term
global economy
 Definition
an economy in which companies compete actively with businesses from all over the world
Term
free trade area
 Definition
a region within which trade restrictions are reduced or eliminated
Term
multinational corporation
 Definition
companies that establish manufacturing and distribution facilities in foreign countries