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Related Flashcards
Related Topics
Cards In This Set
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Importing :
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Buying products from another country
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Exporting :
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Selling products to another country
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Free Trade :
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The movement of goods and services among nations without political or economic barriers
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Comparative Advantage Theory** :
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Country sell to other countries products that it produces most efficiently;buy from others products it cannot produce as effectively or efficiently
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Absolute Advantage :
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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
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Balance of Trade :
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The total value of a nation’s exports compared to its imports measured over a particular period.
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Trade Deficit :
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An unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports
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Balance of Payments :
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Diff betw $$ coming into a country & $$ leaving a country + $$ flows fr other factors: tourism, foreign aid, military $$,& foreign investment.
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Dumping :
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Selling products in a foreign country at lower prices than those charged in the producing country.
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Licensing :
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A global strategy in which the firm(licensor) allows a foreign company(the licensee) to produces its product in exchange for a royalty fee
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Contract Manufacturing :
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A foreign country’s production of private-label goods to which a domestic company than attaches its brand name or trademark
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Joint Venture :
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A partnership in which two or more companies join to undertake a major project
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Strategic Alliance :
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A long-term partnership between two or more companies established to help each company build competitive market advantages
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Foreign Direct Investment :
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The buying of permanent property and business in foreign nations
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Foreign Subsidiary :
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A company owned in a foreign country by another company(parent company).
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