Business: Chapter 3

  1. International Business
    all business activities that involve exchanges across national boundaries
  2. Absolute Advantage
    the ability to produce a specific product more efficiently than any other nation
  3. Comparative Advantage
    the ability to produce a specific product more effieciently than any other product
  4. Exporting
    selling and shipping raw materials or products to other nations
  5. Importing
    purchasing raw materials or products in other nations and bringing them into one's own country
  6. Balance of Trade
    the total value of a nation's exports minus the total value of it's imports over some period of time
  7. Trade Deficit
    a negative balance of trade
  8. Balance of Payments
    the total flow of money into a country minus the total flow of money out of that country over some period of time
  9. Import Duty (tariff)
    a tax levied omn a particular foreign product entering a country
  10. Dumping
    exportation of large quantities of a product at a price lower than that of the same product in the home market
  11. Nontariff Barrier
    a nontax measure imposed by a government to favor domestic over foreign suppliers
  12. Import Quota
    a limit on the amount of a particular good that may be imported into a country during a given period of time
  13. Embargo
    a complete halt to trading with a particular nation or in a particular product
  14. Foreign-Exchange Control
    a restriction on the amount of a particular foreign currency that can be purchased or sold
  15. Currency Devaluation
    the reduction of the value of a nation's currency relative to the currencies of the other countries
  16. General Agreement on Tariffs and Trade (GATT)
    an international organization of 153 nations dedicated to reducing or eliminating tariffs and other barriers to world trade
  17. World Trade Organization (WTO)
    powerful successor to GATT that incorporates trade in goods, services, and ideas
  18. Economic Community
    an organization of nations formed to promote the free movement of resources and products among it's members and to create common economic policies
  19. Licensing
    a contractual agreement in which one firm permits another to produce and market it's product and use it's brand name in return for a royalty or other compensation
  20. Letter of Credit
    issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary
  21. Bill of Lading
    document issued by a transport carrier to an exporter to prove that merchandise has been shipped
  22. Draft
    issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank
  23. Strategic Alliances
    a partnership formed to create competitive advantage on a worldwide basis
  24. Trading Company
    provides a link between buyers and sellers in different countries
  25. Countertrade
    an international barter transaction
  26. Multinational Enterprise
    a firm that operates on a worldwide scale without ties to any specific nation or region
  27. Export-Import Bank of the United States
    an independent agency of the U.S. government whose function it is to assist in financing the exports of American firms
  28. Multilateral Development Bank (MDB)
    an internationally supported bank that provides loans to developing countries to help them grow
  29. International Monetary Fund (IMF)
    an international bank with 184 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits
Card Set
Business: Chapter 3
Business: Chapter 3