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BUSN-1010 Conroy 4

Chapter 4

QuestionAnswer
Balance of Trade The value of a country's exports compared to the value of its imports as measured over a particular period of time.
Common Market Also known as an economic community or a trading bloc, a group of nations within a geographical region that have agreed to remove trade barriers with each other.
Dumping The practice of a foreign company exporting products abroad at a lower price than the price in the home market--or even below the costs of production---in order to drive down the price of the domestic product.
Exporting When a company produces goods domestically and sells them outside the country.
Free Trade The movement of goods and services among nations without political or economic restrictions.
Importing When a company buys goods outside the country and resells them domestically.
Tariff A trade barrier in the form of a customs duty, or tax, levied mainly on imports.
Trade Deficit An unfavorable balance of trade, which exists when the value of a country's total imports exceeds the value of its total exports.
Created by: chuck2983
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