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chapter3-UVI BUS 112
Intro to Business by Koopar- Chapter 3
Question | Answer |
---|---|
international business | encompasses all business activities that involve exchanges across national boundaries |
absolute advantage | is the ability to produce a specific product more efficiently than any other nation |
comparative advantage | the ability to produce a specific product more efficiently than any other product |
exporting | selling and shipping raw materials or products to other nations |
importing | purchasing raw materials or products in other nations and bringing then into one's own country |
balance of trade | the total value of a nation's exports minus the total value of its imports over some period of time |
trade deficit | a negative balance of trade |
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 |
import duty (tariff) | a tax levied on a particular foreign product entering a country |
dumping | exportation of large quantities of a product at a price lower than that of the same product in the home market |
nontariff barrier | a nontax measure imposed by a government to favor domestic over foreign suppliers |
import quota | a limit on the amount of a particular good that may be imported into a country during a given period of time |
embargo | a complete halt to trading with a particular nation or in a particular product |
foreign-exchange control | a restriction on the amount of a particular foreign currency that can be purchased or sold |
currency devaluation | the reduction of the value of a nation's currency relative to the currencies of other countries |
General Agreement on Tarrifs and Trade (GATT) | an international organization of 153 nations dedicated to reducing or eliminating tariffs and other barriers to world trade |
World Trade Organization (WTO) | powerful successor to GATT that incorporates trade in goods, services, and ideas |
economic community | an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies |
licensing | a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation |
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 |
bill of lading | document issued by a transport carrier to an exporter to prove that merchandise has been shipped |
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 |
strategic alliance | a partnership formed to create competitive advantage on a worldwide basis |
trading company | provides a link between buyers and sellers in different countries |
countertrade | an international barter transaction |
multinational enterprise | a firm that operates on a worldwide scale without ties to any specific nation or region |
Export-Import Bank of the United States | an independent agency of the U.S. government whose function is to assist in financing the exports of American firms |
multilateral development bank (MDB) | an internationally supported bank that provides loans to developing countries to help them grow |
International Monetary Fund (IMF) | an international bank with 186 member nations that makes short-term loans to developing countries experiencing balance of payment deficits |