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Chapter 4- vocab

Chapter 4- Global A

TermDefinition
International Trade The exchange of goods and services among nations
Imports Goods and services purchased from other countries
Exports Goods and services sold to other countries
Balance of Trade The difference in value between exports and imports of a nation
Free Trade Commercial exchange between nations that is conducted on free market principals without restrictive regulations.
Tariff A tax on imports
Quota Limits either the quantity or the monetary value of a product that may be imported
Embargo a total ban on specific goods coming into and leaving the country.
Protectionism A governments establishment of economic policies that systematically restrict imports in order to protect domestic industries
World Trade Organization A coalition of nations that make rules governing international trade
North American Free Trade Agreement (NAFTA) an international trade agreement among the United States, Canada, and Mexico.
European Union(EU) The European trading bloc
Licensing Involves letting another company (licensee) use a trademark, patent, special formula, company name, or some other intellectual property for a fee or royalty
Contract Manufacturing Involves hiring a foreign manufacturer to make your products
Joint Venture a business enterprise that companies set up together.
Foreign Direct Investment (FDI) The establishment of a business in a foreign country
Multinationals Large corporations that have operations in several countries
Mini- nationals are midsize or smaller companies that have operations in foreign countries
Globalization Selling the same product and using the same promotion methods in all countries
Adaption A companies use of an existing product and/or promotion to which changes are made to better suit the characteristics of a country or region
Customization Creating specific designed products or promotions for certain countries or regions.
Created by: 82RaiTur
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