Introduction to Business Practice Chapter 5

The ability to produce something more efficiently than any other country

The ability to produce some products more efficiently than others

International competitive advantage stemming from a combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures and rivalries.

Competitive marketing of domestic products against foreign products

The economic value of all the products that a country exports minus the economic value of all the products it imports

Situation in which a country exports more than it imports, creating a favourable balance of trade.

Situation in which country's imports exceed its exports, creating a negative balance of trade.

Flow of all money into or out of a country

Rate at which the currency of one nation can be exchanged for the currency of another nation

Firm that conducts a significant portion of its business in foreign countries

Firm that designs, produces, and markets products in many nations

Foreign individuals or organization that agrees to represent an exporter's interests

Arrangement in which firms choose foreign individuals or organizations to manufacture or market their products in another country

Fees that an exported receives for allowing a company in a foreign country to manufacture or market the exporter's products

A restriction by one nation on the total number of products of a certain type that can be imported from another nation

A government order forbidding exportation and/or importation of a particular product

A tax levied on imported products

A tariff imposed solely to raise money for the government that imposes it

A tariff imposed at least in part t discourage imports of a particular product

A government payment to help domestic business compete with foreign firms

Protecting domestic business at the expense of free market competition

Laws requiring that products sold in particular country be at least partly made in that country

Law or regulation governing business practices in given countries

Any association of producers whose purpose is to control supply of and prices for a given product

Selling a product for less abroad that in the producing nation

• 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?