Term
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Definition
| Buying products from another country. |
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Definition
| Selling products to another country. |
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Definition
| The movement of goods and services among ntions without political or economic barriers. |
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Term
| Comparative Advantage Theory |
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Definition
| 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 or efficiently. |
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Definition
| The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. |
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Definition
| The total value of a nation's exports compared to its imports measured over a particular period. |
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Definition
| A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. |
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Term
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Definition
| An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports. |
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Term
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Definition
| The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flow from other factors such a tourism, foreign aid, military expenditures, and foreign investment. |
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Definition
| Selling products in a foreign country at low prices than those charged in the producing country. |
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Definition
| A 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). |
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Definition
| 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 outsourcing. |
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Definition
| A partnership in which two or more companies (often from different countries) join to undertake a major project. |
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Term
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Definition
| A long-term partnership between two or more companies established to help each company build competitive market advantages. |
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Term
| Foreign Direct Investment (FDI) |
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Definition
| The buying of permanent property and businesses in foreign nations. |
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Definition
| A company owned in a foreign country by another company, called the parent company. |
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Term
| Multinational Corporation |
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Definition
| An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management. |
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Term
| Sovereign Wealth Funds (SWFs) |
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Definition
| Investment funds controlled by governments holding large stakes in foreign companies. |
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Definition
| The value of one nation's currency relative to the currencies of other countries. |
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Term
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Definition
| Lowering the value of a nation's currency relative to other currencies. |
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Definition
| A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services. |
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Definition
| The use of government regulations to limit the import of goods and services. |
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Term
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Definition
| A tax imposed on imports. |
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Term
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Definition
| A limit on the number of products in certain categories that a nation can import. |
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Term
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Definition
| A complete ban on the import or export of a certain product, or the stopping of all trade with a particular counrty. |
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Term
| General Agreement on Tarrifs and Trade (GATT) |
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Definition
| A 1948 agreement that established an international forum fr negotiating mutual reductions in trade restrictions. |
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Term
| World Trade Organization (WTO) |
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Definition
| The international organization that replaced the General Agreement on Tariffs and Trade, and was assigned the duty to mediate trade disputes among nations. |
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Term
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Definition
| A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. An example is the European Union. |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
| Agreement that created a free-trade area among the United States, Canada, and Mexico. |
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