Term | Definition |
International Trade | Exchange of goods and services between nations |
Imports | Goods and services purchased from other countries |
Exports | Goods and services sold to other nations |
Absolute Advantage | Occurs when a country has specific natural resources |
Comparative Advantage | Value that a nation gains by selling the goods it produces more efficiently |
Balance of Trade | The difference in value between Imports and Exports |
Tariff | Tax on imports |
Quota | Limits the monetary value of a product |
Embargo | A total ban on a specific good |
Most-Favored-Nation-Status(MFNS) | Used to encourage trade in these countries |
Foreign Trade Zones | Designated areas of a country where foreign businesses benefit from reduced tariffs |
Export-Import Bank(Eximbank) | Independent agency of the US gov |
International Monetary Fund | Helps stabilize countries in economic trouble |
General Agreement on Tariffs and Trade | International trade agreement to promote free global trade |
North American Free Trade Agreement | International trade agreement to promote free trade in North America |
European Union | Europeans trade bloc |
Customs Brokers | Specialists who are licensed by the US treasury |
Letter of Credit | Most secure way of payment |
Draft | Reverse Check |
Time Draft | US sends documents through a bank |
Multinationals | Large corporations that have operations in several countries |
Mini-nationals | Midsized or smaller companies that have operations in foreign countries |
Joint Ventures | Direct investment via Domestic Partner |
Nationalize | Government seizes private land |