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FCSDIB-Ch 4

Int. Business Vocab Ch 4

TermDefinition
boycott absolute restriction on the import of certain products from certain countries
common market an agreement among contries that eliminates trade barriers, encourages investment, & allows workers to move freely across borders
democracy a political system in which all people take part in making the rules that govern them
duty a tax placed on products that are traded internationally
economic nationalism a policy of restricting foreign ownership of local companies & hindering foreign imports
expropriation when a government takes control & ownership of foreign-based assests & companies
free-trade agreement an arrangement between contries that eliminates duties & trade barriers on products traded among themselves
free-trade zone a designated area where products can be imported duty-free
home country the country in which a multinational enterprise is headquartered
host country the country in which a multinational enterprise is a guest
most-favored nation (MFN) status designation given to certain countries that allows their products to be imported into the granting country under the lowest customs duty rate
political system the means by which people in a society make the rules by which they live
protectionism a government policy of protecting local or domestic industries from foreign competition
quota a limit on the total number, quantity, or monetary amount of a product that can be imported from a given country
social responsibility the process when people function as good citizens who are sensitive to their surroundings
tax holiday situation where a corporation does not pay corporate income taxes to a foreign government if it invests in their country
totalitarian system a government system in which political control is held by one person or a small group of people
trade embargo a sanction imposed by a country against another country that stops all import-export trade with that country
Created by: fcsdklw
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