Business Chapter 3
all business activities that involve exchanges across national boundaries
the ability to produce a specific product more efficiently than any other nation
the ability to produce a specific product more efficiently than any other product
selling and shipping raw materials or products to other nations
purchasing raw materials or products in other nations and bringing them into one's own country
the total value of a nation's exports minus the total value of its imports over some period of time
a negative balance of trade
the total flow of money into a country minus the total flow of money out of that country over some period of time
a tax levied on a particular product entering a country
exportation of large quantities of a product at a price lower than that of the same product in the home market
a nontax measure imposed by a government to favor domestic over foreign suppliers
a limit on the amount of a particular good that may be imported into a country during a given period of time
a complete halt to trading with a particular nation or a particular product
a restriction on the amount of a particular foreign currency that can be purchased or sold
the reduction of the value of a nation's currency relative to the currencies of other countries
General Agreement on Tariffs 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
an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies
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
issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary
document issued by a transport carrier to an exporter to prove that merchandise has been shipped
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
newest form of international business structure, a partnership formed to create competitive advantage on a worldwide basis
provides a link between buyers and sellers in different countries
An international barter transaction
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 188 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits
A country imports more than it exports, its balance of trade is negative
imposed solely to generate income for the government
imposed to protect a domestic industry from competition by keeping the price of competing imports level with or higher than the price of similar domestic products
arranges the sale of the products to foreign intermediaries for a commission of fee
partnership formed to achieve a specific goal or to operate for a specific period of time
focusNode
Didn't know it?
click below
Knew it?
click below
Embed Code - If you would like this activity on your web page, copy the script below and paste it into
your web page.
Normal Size Small Size show me how
| International business | All business activities that involve exchanges across national boundaries |
| Absolute advantage | 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 them 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 (unfavorable) balance of trade—imports exceed exports in value |
| Balance of payments | The total flow of money into a country minus the total flow of money out of that country over a period of time |
| Import duty (tariff) | A tax levied on a particular foreign product entering a country |
| Dumping | The exportation of large quantities of a product at a price lower than that of the same product in the home market |
| Nontariff barriers | A nontax measures 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 during a given time |
| Embargo | A complete halt to trading with a particular nation or in a particular product |
| Foreign exchange control | A restriction on amount of 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 of Tariffs and Trade (GATT) | International organization of 153 nations dedicated to reducing or eliminating tariffs and other trade barriers |
| 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 | Issued by a transport carrier to an exporter to prove 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 alliances | Partnerships formed to create competitive advantage on a worldwide basis |
| Trading companies | Firms that provide 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 |
| The Export-Import Bank of the United States (Eximbank) | An independent agency of the U.S. government whose function it 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 |
| The International Monetary Fund (IMF) | An international bank with 186 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits |