Ch 5 Flashcards
Returning production jobs to the United States
Inshoring
A company that is heavily involved in international trade, beyond exporting and importing
Multinational corporation
Using more capital than labor in the production process
Capital Intensive
Production of uniform products that can be sold the same way all over the world
Global Marketing Standardization
When national firms enable individual subsidiaries to compete independently in domestic markets
Multidomestic strategy
The largest Latin American trade agreement
Mercosur
A trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
Uruguay Round
A trade agreement that contained loopholes enabling countries to avoid trade barrier reduction agreements
General Agreement on Tariffs and Trades (GATT)
An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
International Trade Fund (IMF)
An intermediary in the global market that assumes all ownership risks and sells globally for its own account
Buyer for export
An intermediary who plays the international broker’s role by bringing buyer and seller together
Export broker
An intermediary who acts like a manufacturer’s agent for the exporter
Export agent
Private label manufacturing by a foreign company
Contract manufacturing
Active ownership of a foreign company or of overseas manufacturing or marketing facilities
Direct Foreign Investment
A system in which prices of different currencies move up and down based on the demand for and the supply of each currency
Floating exchange rates
The sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter
Dumping
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services
Countertrade
