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STC-BusinessNow CH11
| Term | Definition |
|---|---|
| Global business | Any activity that seeks to provide goods and services to others across national borders while operating at a profit. |
| Exporting | Selling products to another country. |
| Importing | Buying products from another country. |
| Free trade | The movement of goods and services among nations without political or economic trade barriers. |
| Global trade | The exchange of goods and services across national borders. |
| Comparative advantage | A theory that states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products that it cannot produce as effectively or efficiently. |
| Absolute advantage | The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. |
| Balance of trade | The total value of a nation’s exports compared to its imports measured over a particular period. |
| Trade surplus | A favorable balance of trade; occurs when the value of a country’s exports exceed that of its imports. |
| Trade deficit | An unfavorable balance of trade; occurs when the value of a country’s imports exceed that of its exports. |
| Balance of payments | The difference between money coming into a country) from exports) and money leaving the country (for imports) plus money flows from, foreign aid, military other factors, such as tourism, foreign aid, military expenditures, and foreign investment. |
| Dumping | Selling products in a foreign country as lower prices than these charged in the producing country. |
| Gray market | The flow of goods in a distribution channel or channels other than those intended by the manufacturer or licensor. |
| Trace protectionism | The use of government regulations to limit the import of goods and service. |
| Tariff | A tax on imports. |
| Harmonized Tariff | Schedule of tariff costs for every product from every country that is published by the U.S. government. |
| Import quota | A protection policy that limit the number of products in a certain categories that a nation can import. |
| Embargo | A complete ban on the import or export of a certain product or the stopping of all trade with a particular country. |
| Nontariff barriers | Restrictive standards that detail exactly how a product must be sold in a country. |
| General Agreement on Tariffs and Trade (GATT) | A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions. |
| World Trade Organization (WTO) | The international organization that replaced the General Agreement on Tariffs and Trade and was assigned the duty of mediating trade disputes among nations. |
| Common market (trading bloc) | A regional group of countries that have a common external tariff, no internal tariffs, and coordinated laws that aid trade among member countries. |
| European Union (EU) | An agreement among European member countries to eventually reduce all barriers to trade and become unified, both economically and politically. |
| The organization of the Petroleum Exporting Countries (OPEC) | An organization of 13 oil-producing nations that work together to protect their interests. |
| North American Free Trade Agreement (NAFTA) | Am agreement that created free-trading area among the United States, Canada, and Mexico. |
| Contract manufacturing | A foreign country’s production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing. |
| Joint venture | A partnership in which two or more companies (often from different countries) undertake a major project. |
| Greenfield investment | A form of foreign direct investment in which a company builds factories and offices in a foreign country on its own. |
| Strategic alliance | A long-term partnership between two or more companies established to help each company build competitive market advantages. |
| Foreign direct investment (FDI) | The buying on permanent property and business in foreign nations. |
| Foreign subsidiary | A company owned in a foreign country by another company, called the parent company. |
| Expropriation | When a host government takes over a foreign subsidiary in a country. |
| Multinational Corporation | An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management. |
| Culture | The set of values, beliefs, rules, and institutions held by a specific group of people. |
| Ethnocentricity | An attitude that one’s own culture is superior to other cultures. |
| Exchange rate | The value of one nation’s currency relative to the currencies of other countries. |
| Counter trading | A complex form of bartering in which several; countries may be involved, each trading goods for foods or services for services. |
| Licensing | A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty). |
| Maslow’s Hierarchy of Needs | Physiological needs, Safety needs, Social needs, Esteem needs and Self-actualization needs. |
Created by:
vjambriz
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