Term
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Definition
| The buying, selling, and trading of goods and services across national boundaries. |
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Term
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Definition
| A monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item. |
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Definition
| the basis of most international trade; when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items. |
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Term
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Definition
| the transformation of manufacturing or other tasks --such as data processing-- to countries where labor and supplies are less expensive. |
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Definition
| the sale of goods and services to foreign markets. |
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Term
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Definition
| the purchase of goods and services from foreign sources. |
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Term
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Definition
| the difference in value between a nation's exports and its imports. |
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Term
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Definition
| A nation's negative balance of trade, which exists when that country imports more products than it exports. |
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Term
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Definition
| A nation's positive balance of trade (more exports than imports) |
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Term
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Definition
| the difference between the flow of money into and out of a country. |
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Term
| What compromises the balance of payment? |
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Definition
| A country's balance of trade, foreign investments, foreign aid, loans, military expenditures, and money spent by tourists. |
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Term
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Definition
| economically advanced nations such as the United States, Japan, Great Britain, and Canada. |
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Term
| Less-Developed Countries (LDC) |
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Definition
| Characterized by low per-capita income (income generated by the country's production of goods and services provided by the population), which means that consumers are less likely to purchase nonessential products. |
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Term
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Definition
| the physical facilities that support a country's economic activities, such as railroads, highways, airports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems. |
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Term
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Definition
| the ratio at which one nation's currency can be exchanged for another nation's currency. |
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Term
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Definition
| Decreases the value of currency in relation to other currencies. |
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Term
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Definition
| Increases the value of currency in relation to other currencies. |
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Term
| Webb-Pomerence Act of 1918 |
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Definition
| exempts American firms from anti-trust laws if those firms are acting together to enter international trade. Allows U.S. firms to form monopolies to compete with foreign monopolistic organizations but they are not allowed to limit free trade in the U.S. or to use unfair methods when competing in the international trade. |
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Term
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Definition
| a tax levied by a nation on goods imported into the country. |
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Term
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Definition
| A specific amount of money levied on each unit of product brought into the country. |
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Term
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Definition
| tax based on the value of the item. |
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Term
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Definition
| regulations that restrict the amount of currency that can be bought or sold. |
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Term
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Definition
| a restriction on the number of units of a particular product that can be imported into a country. |
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Term
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Definition
| a restriction on the number of units of a particular product that can be imported into a country |
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Term
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Definition
| the act of a country or business selling products for less than the cost of production. |
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Term
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Definition
| a group of firms or nations that agrees to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets. |
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Term
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Definition
| differences in spoken and written language. body language and personal space as well. |
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
a trade agreement, originally signed by 23 nations in 1947, that provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved.
pg 98 |
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Term
| World Trade Organization (WTO) |
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Definition
international organization dealing with the rules of trade between nations.
pg 99 |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactures products to encourage trade among Canada, the United States, and Mexico.
pg 99 |
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Term
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Definition
| production companies using mexico's low labor costs and proximity to the US. |
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Term
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Definition
| a union of European nations established in 1958 to promote trade among its members; one of the largest single markets today. |
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Term
| Asia-Pacific Economic Cooperation (APEC) |
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Definition
an international trade alliance that promotes open trade and economic and technical cooperation among member nations.
pg 101 |
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Term
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Definition
| an organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries; formally known as the International Bank for Reconstruction and Development. |
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Term
| International Monetary Fund (IMF) |
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Definition
organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.
pg. 103 |
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Term
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Definition
| foreign trade agreements that involve bartering products for other products instead of for currency. |
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Term
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Definition
| the "middle man" in importing goods. |
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Term
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Definition
| a firm that buys goods in one country and sells them to buyers in another country. |
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Term
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Definition
| a trade agreement in which one company--the licensor--allows another company--the licensee-- to use it's company's name products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty. |
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Term
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Definition
| a form of licensing in which a company--the franchiser--agrees to provide a franchisee a name, logo, methods of operation, advertising, products, and other elements associated with a franchiser's business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations. |
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Term
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Definition
| the hiring of a foreign company to produce a specified volume of the initiating company's product to specification; the final product carries the domestic firm's name. |
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Term
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Definition
| The relocation of business processes by a company or subsidiary to another country. Offshoring is different than outsourcing because the company retains control of the offshore processes. |
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Term
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Definition
| the sharing of the costs and operation of a business between a foreign company and a local partner. |
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Term
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Definition
| a partnership formed to create competitive on a worldwide basis. |
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Term
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Definition
| the ownership of oversee facilities. |
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Term
| Multinational Corporation (MNC) |
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Definition
| a corporation that operates on a worldwide scale, without significant ties to any one nation or region. |
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Term
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Definition
| a plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences. |
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Term
| Global Strategy (Globalization) |
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Definition
| a strategy that involves standardizing products (and, as much as possible, their promotions and distribution) for the whole world, as if it were a single entity. |
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