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Definition
| domestically produced goods and services sold in markets in other countries |
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| foreign made products purchased by domestic consumers |
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| difference between a nation's exports and imports |
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| overall flow of money into or out of a country |
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| making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor. |
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| if it can supply its products more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries |
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| the rate at which a nation's currency can e exchanged for the currencies of other nations |
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| drop in currency's value relative to other currencies or to a fixed standard |
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| basic systems of communication, transportation, and energy facilities in a country |
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| the foreign corrupt practices act |
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Definition
| forbids U.S. companies from bribing foreign officials, political candidates, or government representatives. |
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| taxes, surcharges, or duties on foreign products |
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| limit set on the amounts of particular products that countries can import during specified time periods |
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| selling products abroad at prices below production costs or below typical prices in the home market to capture market share from domestic competitors |
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| total ban on importing specific products or a total halt to trading with a particular country |
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| restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency |
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
| international trade accord that substantially reduced worldwide tariffs and other trade barriers |
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Term
| World Trade Organization (WTO) |
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Definition
| 153-member international institution that monitors GATT agreements and mediates international trade disputes |
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Definition
| organization established by industrialized nations to lend money to less developed countries |
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| International Monetary Fund (IMF) |
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Definition
| organization created to promote trade, eliminate barriers, and make short term loans to member nations that are unable to meet their budgets |
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Definition
| are in which they trade freely among themselves without tariffs or trade restrictions |
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| sets up a free-trade area and specifies a uniform tariff structure for members' trade with non-member nations |
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| members go beyond a customs union and try to bring all of their trade rules into agreement |
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| North American Free Trade Agreement (NAFTA) |
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Definition
| agreement among the U.S., Canada, and Mexico to break down tariffs and trade restrictions |
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Term
| Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) |
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Definition
| agreement among the U.S., Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua to reduce tariffs and trade restrictions |
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| 27-nation European economic alliance |
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| when it manufactures a product, such as an electronic component, that becomes art of another product sold in foreign markets |
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| when a company seeks to ell its products in markets outside its own country. |
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| export management company |
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Definition
| for advice and expertise. exporting firm |
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Term
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| matches a small business with a major international firm. Small firm becomes subcontractor to the larger one. |
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| barter agreement whereby trade between two or more nations involves payment made in the form of local products instead of currency |
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| contractual agreement in which a franchisee gains the right to produce and/or sell the franchiser's products under that company's brand name if they agree to certain operating requirements |
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| foreign licensing agreement |
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Definition
| international agreement in which one firm allows another to produce or sell its product, or use its trademark, patent, or manufacturing processes, in a specific geographical area in return for royalties or other compensation |
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Definition
| international agreement that involves hiring local companies to produce, distribute, or sell goods or services in a specific country or geographical region |
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| the relocation of business processes to a lower-cost location overseas |
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| a company purchases another existing firm the host country |
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| partnership between companies formed for a specific undertaking |
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Term
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| company can conduct a significant amount of its business overseas |
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Term
| multinational corporation (MNC) |
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Definition
| firm with significant operations and marketing activities outside its home country |
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Definition
| offering a standardized, worldwide product and selling it in essentially the same manner throughout a firm's domestic and foreign markets |
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| multidomestic business strategy |
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Definition
| developing and marketing products to serve different needs and tastes of separate national market |
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