The ability to produce something more efficiently than any other country
Describe comparative advantage:
The ability to produce some products more efficiently than others
Describe National competitive advantage:
International competitive advantage stemming from a combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures and rivalries.
Describe International competitiveness:
Competitive marketing of domestic products against foreign products
Balance of trade:
The economic value of all the products that a country exports minus the economic value of all the products it imports
Surplus:
Situation in which a country exports more than it imports, creating a favourable balance of trade.
Deficit:
Situation in which country's imports exceed its exports, creating a negative balance of trade.
Balance of payments:
Flow of all money into or out of a country
Exchange rate:
Rate at which the currency of one nation can be exchanged for the currency of another nation
International firm:
Firm that conducts a significant portion of its business in foreign countries
Multinational firm:
Firm that designs, produces, and markets products in many nations
Independent agent
Foreign individuals or organization that agrees to represent an exporter's interests
Licensing arrangement
Arrangement in which firms choose foreign individuals or organizations to manufacture or market their products in another country
Royalties
Fees that an exported receives for allowing a company in a foreign country to manufacture or market the exporter's products
Quota
A restriction by one nation on the total number of products of a certain type that can be imported from another nation
Embargo
A government order forbidding exportation and/or importation of a particular product
Tariff
A tax levied on imported products
Revenue tariff
A tariff imposed solely to raise money for the government that imposes it
Protectionist tariffs
A tariff imposed at least in part t discourage imports of a particular product
Subsidy
A government payment to help domestic business compete with foreign firms
Protectionism
Protecting domestic business at the expense of free market competition
Local-content laws
Laws requiring that products sold in particular country be at least partly made in that country
Business-practice law
Law or regulation governing business practices in given countries
Cartel
Any association of producers whose purpose is to control supply of and prices for a given product
Dumping
Selling a product for less abroad that in the producing nation
Explain the process for a company of go international:
The process in which a company researches if going international is possible.
Ex is there international demand for the firm's products?
can the product be modified to fit a foreign market?
is the foreign business climate suited to imports?
does the firm have or can it get necessary skills and knowledge to do business abroad?