Intro To Business Chapter 3 Review – Flashcards
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Making, Buying, and selling of goods and services within a country
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Domestic Business
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Business activity need for creating, shipping, and selling goods and services across borders
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International Business
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Countries are _______ and so are there economies.
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Interdependent
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When a country can produce a good or service at a lower cost than any other country
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Absolute Advantage
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Situation in which a country specialized in the production of a good or service at which it is more efficient.
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Comparative Advantage
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Items bought from other countries
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Imports
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Goods and services sold to other countries
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Exports
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Difference between a country's total exports and imports
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Balance of Trade Exports > Imports = Trade Surplus Imports > Exports = Trade deficit
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Money goes from country to country through _______ and _________
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Investments and Tourism
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Difference between the amount of money that comes in and gets sent out
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Balance of Payments
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Value of currency in a country to value of number, Currency depends on supply and demand
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Exchange Rate
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Strong Currency- Weak Currency-
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Buy more Buy less( american currency is weaker)
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Restriction to free trade
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International Trade Barriers
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Limit of quantity of a products that maybe imported or exported
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Quotas
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Tax on imported goods
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Tariff
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Stop of export and import of products
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Embargo
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Selected are where products can be imported duty-free and then stored,assembled,and/or used in manufacturing; often a seaport or airport
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Free-Trade Zones
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Member countries agree to remove all duties (imported taxes) and trade barriers on products traded among them.
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Free-Trade Agreement
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Members do away with import taxes and other trade barriers; also called an economic community
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Common Market
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An organization that does business in several countries, With there parent company in home country and separate divisions in host country.
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Multinational Company (MNC)
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Same product and marketing world wide
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Global Strategy
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Treat each country market differently
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Multinational Strategy
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Selling the right to use some intangible property
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Licensing
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Grant a business power to operate and run a business a set way.
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Franchising
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Unique business organized by two or more other businesses to operate for a limited time
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Joint Venture
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Settles trade disputes and enforces free-trade agreements
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World Trade Organization(WTO)
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Promotes economic cooperation, monitors exchange rates
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International Monetary Fund (IMF)
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Gives economic aid to less developed countries
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World Bank
