AFTER IS FINAL STUFF Flashcards
what is a absolute advantage
its when you have the ability tto produce something more efficiently than any other country
what is a comparative advantage
its when you have the ability to produce something more efficiently then other things
4 conditions of national competitive advantage
factor conditions, demand conditions, related and supporting industries, strategies structure and rivalries
what is the balance of trade
its the difference between the total exports and the imports
what is a trade surplus
its when the exports are greater then the imports
what is the balance of payments
its the difference between the money coming in and the money coming out
what is a favourable balance
its when the money coming in is greater than the money going out
what is a unfavorable balance
its when the money going out is greater then the money coming in
what are the levels of involvement ranked lowest to highest
exporters and importers, international firms, multinational firms,
international business structures from simplest to most complex
Independent agent, licensing arrangements, brach offices, strategic alliances, foreign direct investments,
main example of a licensing arrangement
franchises
what is a indepedent agent
its like working with a sales rep in the country you want to go into
examples of foreign direct investment
its when you make a big investment abroad ie: investing in a wharehouse.
what are some barriers to international trade
social and culture, economic differences, legal and political
what are some examples of social and cultural
language, demographic, lifestyle, business practices
