Term
|
Definition
| Buying products from another country. |
|
|
Term
|
Definition
| Selling products to another country |
|
|
Term
|
Definition
| The movement of goods and services among nations without political or economic barriers. |
|
|
Term
| comparative advantage theory |
|
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. |
|
|
Term
|
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. |
|
|
Term
|
Definition
| The total value of a nation's exports compared to its imports measured over a particular period. |
|
|
Term
|
Definition
| A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. |
|
|
Term
|
Definition
| An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports. |
|
|
Term
|
Definition
| The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flow from other factors such as tourism, foreign aid, military expenditure, and foreign investment. |
|
|
Term
|
Definition
| Selling products in a foreign country at lower prices than those charged in the producing country. |
|
|
Term
|
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 (a royalty). |
|
|
Term
|
Definition
| A foreign country's production of private-label goods to which a domestic company then attaches its brandname or trademark; part of the broad category of outsourcing. |
|
|
Term
|
Definition
| A partnership in which two or more companies (often from different countries) join to undertake a major project. |
|
|
Term
|
Definition
| A long-term partnership between two or more companies established to help each company build competitive market advantages. |
|
|
Term
| foreign direct investment (FDI) |
|
Definition
| The buying of permanent property and businesses in foreign nations. |
|
|
Term
|
Definition
| A company owned in a foreign country by another company, called the parent company. |
|
|
Term
| multinational corporation |
|
Definition
| An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management. |
|
|
Term
| sovereign wealth funds (SWFs) |
|
Definition
| Investment funds controlled by governments holding large stakes in foreign companies. |
|
|
Term
|
Definition
| The value of one nation's currency relative to the currencies of other countries. |
|
|
Term
|
Definition
| Lowering the value of a nation's currency relative to other currencies. |
|
|
Term
|
Definition
| A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services. |
|
|
Term
|
Definition
| The use of government regulations to limit the import of goods and services. |
|
|
Term
|
Definition
| A tax imposed on imports. |
|
|
Term
|
Definition
| A complete ban on the import or export of a certain product, or the stopping of all trade with a particular country. |
|
|
Term
| General Agreement on Tariffs and Trade (GATT) |
|
Definition
| A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions. |
|
|
Term
| World Trade Organization (WTO) |
|
Definition
| The international organization that replaced the General Agreement on Tariffs and Trade and was assigned the duty to mediate trade disputes among nations. |
|
|
Term
|
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.
Ex: European Union |
|
|
Term
| North American Free Trade Agreement (NAFTA) |
|
Definition
| Agreement that created a free-trade area among the U.S., Canada and Mexico. |
|
|
