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| Purchase, sale, or exchange of goods and services across national borders |
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| Trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports |
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| Condition that results when the value of a nation's exports is greater than the value of its imports |
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| Conditions that results when the value of a country's import is greater than the value of its exports |
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| Ability of nation of produce of a good more efficiently than any other nation |
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| Inability of a nation to produce a good more efficiently than other nations but an ability to produce that good more efficiently than it does any other good |
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| Factor proportions theory |
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| Trade theory stating that countries produce and export goods that require resoures (factors) that are abundant and import goods that require resources in short supply |
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| International product life cycle |
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Definition
| Theory stating that a company will being by exporting its product and later undertake foriegn direct investment as the product moves through it life cycle |
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| Trade theory starting that (1) there are gains to be made from specialization and increasing economies of scales, (2) the companies first to market can create barriers to entry, and (3) government may play a role in assisting its home companies |
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Definition
| Economic and strategic advantage gained by being the first copany to enter an industry |
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| National competitive advantage theory |
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Definition
| Trade theory stating that a nation's competitiveness in an industry depends on the capcity of the industry to innovate and upgrade |
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