Chapter 3 Vocabulary

Buying products from another country.

Selling products to another country.

The movement of goods and services among nations without political or economic barriers.

Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively and efficiently.

The advantage tat exists when a country has a monopoly on producing a specific product or is ale to produce it more efficiently that all other countries.

The 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)

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of out sourcing.