Term
| Why Should nations trade with other nations? |
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Definition
1). no country is self-sufficient
2). other countries need products that prosperous countries produce
3). natural resources and technological skills are not distributed evenly around the world |
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Term
| what is the theory of comparative advantage? |
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Definition
| the theory of comparative advantage contends that a country should make and then nsell those products it produces most efficiently but BUY those it CANNOT produce as efficiently. |
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Term
| what is absolute advantage |
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Definition
| absolute advantage means that a country has a monopoly on a certain product or can produce the product more efficiently than any other country. |
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Term
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Definition
| is selling products to other countries |
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Term
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Definition
| is buying products from other countries |
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Term
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Definition
| is the relationship of exports to imports. |
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Term
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Definition
| is the balance of trade plus other money flows such as tourism and foreign aid |
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Term
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Definition
| is selling products for less in a foreign country than in your own country. |
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Term
| what are some ways in which a company can engage in global business |
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Definition
| ways of entering world trade include licensing, exporting, franchising, contract manufacturing, joint ventures, and strategic alliances, and direct foreign investment |
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Term
| how do multinational corporations differ from other companies that participate in global business |
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Definition
| unlike companies that only export or import, multinational corporations also have manufacturing facilities or other physical presence abroad |
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Term
| what are some of the forces that can discourage participation in global business |
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Definition
| potential stumbling blocks to global trade include sociocultural forces, economic and financial forces, legal and regulatory forces, and physical and environmental forces |
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Term
| what is trade protectionism |
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Definition
| trade protectionism is the use of government regulations to limit the import of goods and services. advocates believe it allows domestic producers to grow, producing more jobs. the key tools of protectionism are tariffs, import quotas, and embargoes |
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Term
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Definition
| tariffs are taxes on foreign products. protective tariffs raise the price of foreign products and protect domestic industries; revenue tariffs raise money for the government. |
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Term
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Definition
| an embargo prohibits the importing or exporting of certain products |
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Term
| is trade protectionism good for domestic producers |
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Definition
| that is debatable. trade protectionism offers pluses and minuses |
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Term
| why do governments continue such practices |
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Definition
| the theory of mercantilism started the practice of trade protectionism and it has persisted, though in a weaker form, ever since |
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Term
| what is offshore outsourcing? why is it a major concern for the future? |
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Definition
| outsourcing is the purchase of goods and services from outside a firm rather than providing them inside the company. today, more businesses are outsourcing manufacturing and service offshore. many fear that growing numbers of jobs in the united states will be lost due to offshore outsourcing and that the quality of products produced could be inferior |
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Term
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Definition
| a favorable balance of trade; occurs when the value of a countries exports exceeds that of its imports |
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Term
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Definition
| an unfavorable balance of trade; occurs when the value of a country's imports exceed that of its exports |
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Term
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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) |
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Term
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Definition
| is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a product or service in a given territory in a specified manner. |
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Term
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Definition
| a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark |
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Term
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Definition
| is a partnership in which two or more companies (often from different countries) join to undertake a major project. |
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Term
| foreign direct investment |
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Definition
| is the buying of permanent property and businesses in foreign nations. |
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Term
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Definition
| a company owned in a foreign country by another company, called the parent company. the subsidiary operates like a domestic firm, with production, distribution promotion, pricing, and other business functions under the control of the subsidiary's management. |
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Term
| mulitinational corporations |
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Definition
| one that manufactures and markets products in many different countries and has multinational stock ownership and management |
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Term
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Definition
| investment funds controlled by governments, holding large stakes in foreign companies. |
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Term
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Definition
| is the value of one nation's currency relative to the currencies of other countries |
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Term
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Definition
| lowers the value of a nations currency relative to others |
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Term
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Definition
| is a complex form of bartering in which several countries each trade goods or services for other goods or services |
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Term
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Definition
| limits the number of products in certain categories a nation can import |
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Term
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Definition
| is the complete ban on the import or export of a certain product or country |
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Term
| GATT or General Agreement on Tariff and Trade |
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Definition
| a global forum for reducing trade restrictions on goods, services, ideas, and cultural programs |
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Term
| WTO or World Trade Organization |
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Definition
| to mediate trade disputes among nations. cross-border trade issues and global business practices |
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Term
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Definition
| is a regional group of countries with a common external tariff, no internal tariffs and coordinated laws to facilitate exchange among members |
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Term
| North American Free Trade Agreement NAFTA |
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Definition
which created a free-trade zone between the americas, CANADA, AMERICA, AND MEXICO
Objects
1eliminate trade barriers and facilitate cross border movement of goods and services
2promote conditions of fair competition
3increase investment opportunities
4provide effective protection and enforcement of intellectual property rights(copyrights)
5establish a framework for further regional trade cooperation
6improve working conditions in north america |
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