Term
| Difference between absolute advantage and comparative advantage |
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Definition
AA- countries have the absolute advantage over others if they can produce a product that other countries cant. Eg. South Africa produces diamonds better than in the U.S.
CA-Countries/producers should specialize in what they do best |
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Term
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Definition
| exchange of goods and services of different countries for monetary returns. |
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Term
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Definition
exchange of goods and services of different countries without an additional monetary return.
eg. Exchange aircraft for a fishing ship |
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Term
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Definition
| difference between the value of the goods a country exports and the value of the goods it imports |
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Term
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Definition
| Factors that restrict trade: tarrifs, quotas, and embargoes |
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Term
| State reasons why companies would want to expand their markets. |
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Definition
-more money
-if a country is bored with a product, the market could expand to a different country in which is new to the product |
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Term
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Definition
| a gov't imposed tax on imports. The increase of price on import products allows domestic products to compete |
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Term
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Definition
| restriction of the quantity of a product. This allows for producers to stay in business and to keep employees working. |
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Term
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Definition
| punishing a country by disallowing it to sell products to another country or by not purchasing any products of another country because of a policy one doesn't like. Eg. Cuba |
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Term
| Describe the global economy and state factors that led to it |
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Definition
companies compete actively with businesses from all around the world
Factors that led to this include:
-telecommunications: e-commerce, fax machines, email
-free trade areas
-political changes |
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Term
| What are the forms of int. operations? |
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Definition
| operations of selling products in foreign countries: foreign intermediary, licensing agreement, strategic alliance |
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Term
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Definition
| A representative who works for multiple companies that market products in different countries. He/she will not provide first-class service because the FI is repping for multiple companies. |
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Term
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Definition
| An agreement between companies in which one company permits to sell a product of another company in return of a percentage of that company's revenue. |
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Term
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Definition
| an alliance that enables two or more countries to pool resources and skills to reach common goals. Eg. Ford and Mazda |
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Term
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Definition
| a citizen of one country works in a different country. They have to know the language and culture of that country- the job lacks freedom. |
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Term
| What are some cultural differences? |
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Definition
| power distance, indidvidualism/collectivism, uncertainty avoidance, masculinity/femininity, long-term/short-term oriented, |
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Term
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Definition
high: hierarchy; power and status are important
low: people are equal |
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Term
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Definition
high: must have job security; rule oriented
low: less structured; less rules |
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Term
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Definition
m: assertive, material success, ambition
f: relationship oriented, cooperation, quality of life |
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Term
| Long-term/Short-term Orientation |
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Definition
l: stable, persistent, respect for tradition, fulfilling social responsibilities, maintaining status
s: live in the present, achieve quick results |
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Term
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Definition
Countries help each other to improve the economic conditions of each other.
eg. OPEC |
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Term
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Definition
an intergovernmental agreement that reduces trade restrictions
Eg. NAFTA, EU |
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