Term
| Multinational Corporations |
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Definition
| Firms that own production facilities in two ore more countries and produce and sell their products globally. |
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Definition
| A lower relative opportunity cost than that of another producer or country. |
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Term
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Definition
| The rate at which units of one product can be exchanged for units of another product; the price of a good or service; the amount of one good or service that must be given up to obtain one unit of another good or service. |
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Term
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Definition
| A market in which the money (currency) of one nation can be used to purchase (can be exchanged for) the money of another nation; currecny market |
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Term
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Definition
| The rate of exchange of one nation's currency for another nation's currency. |
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Definition
| A decrease in the value of the dollar relative to another currency, so a dollar buys a smaller amount of the foreign currency and therefore of foreign goods. |
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Definition
| An increase in the value of the dollar relative to the currency of another nation, so a dollar buys a larger amount of the foreign currency and thus of foreign goods |
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Term
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Definition
| A tariff designed to shield domestic producers of a good or service from the competition of foreign producers |
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Definition
| A limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time |
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Definition
| All barriers other than protective tariffs that nations erect to impede international trade, including import quotas, licensing requirements, unreasonable product-quality standards, unnecessary bureaucratic detail in customs procedures, and so on. |
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Term
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Definition
| Government payments to domestic producers to enable them to reduce the price of a good or service to foreign buyers. |
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Term
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Definition
| Legislation passed that established very high tariffs. Its objective was to reduce imports and stimulate the domestic economy, but it resulted only in retaliatory tariffs by other nations. |
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Term
| Reciprocal Trade Agreements Act |
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Definition
| A law that authorized the president to negotiate up to 50 percent lower tariffs with foreign nations that agreed to reduce their tariffs on U.S. goods. |
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Term
| Most-Favored-Nation Clauses |
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Definition
| An agreement by the US to allow some other nation's exports into the US at the lowest tariff level levied by the US, then or at any later time. |
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
| The international agreement where multiple nations agreed to give equal and nondiscriminatory tretment to one another, to reduce tariff rates by multinational negotiations, and to eliminate import quotas. Now the WTO |
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Term
| World Trade Organization (WTO) |
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Definition
| An organization of many nations that oversees the provisions of the current world trade agreement, resolves trade disputes stemming from it, and holds forums for further rounds of trade. |
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Term
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Definition
| The latest, uncompleted sequence of trade negotiations by members of the WTO named after Doha, Qatar. |
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Term
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Definition
| An associateion of European nations that has eliminated tariffs and quotas among them, established common tariffs for imported goods from outside the member nations, eliminated barriers to the free movement of capital, and created otehr common economic policies. |
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Term
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Definition
| A group of nations that lower or abolish trade barriers among members. Examples include the European Union and the nations of the NAFTA. |
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Term
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Definition
| The currency unit used by 12 European nations in the Euro zone. |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
| An agreement establishing, over a 15-year period, a free-trade zone composed of Canada, Mexico, and the US |
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