all business activities that involve exchanges across national boundaries
Absolute advantage
the ability to produce a specific product more efficiently than any other nation
Comparative advantage
the ability to produce a specific product more efficiently than any other product
Exporting
selling and shipping raw materials or products to other nations
Importing
purchasing raw materials or products in other nations and bringing them into one's own country
Balance of trade
the total value of a nation's exports minus the total value of its imports over some period of time
Trade deficit
a negative balance of trade
Import duty
a tax levied on a particular foreign product entering a country
Import Quota
a limit on the amount of a particular good that may be imported into a country during a given period of time
Embargo
a complete halt to trading with a particular nation or in a particular product
Licensing
a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation