Ch.4 Trade Flashcards
Global coalition of nations that make the rules governing international trade.
WTO
Goods and services purchased from other countries.
Imports
Limits either the quantity or the monetary value of a product that may be imported.
Quota
The difference in value between exports and imports.
Balance of Trade
Goods and services sold to other countries.
Exports
The process of selling the same product and using the same promotion methods in all countries.
Globalization
This process involves creating products or promotions for certain countries or regions.
Customization
The process of hiring foreign manufacturing to make products according to certain specifications.
Contract Manufacturing
Investments in factories, offices, and other facilities in another country that are used for a business’s operations.
Foreign Direct Investment (FDI)
Ability of an individual or group to carry out a particular economic activity more efficiently than another activity.
Comparative Advantage
Occurs when a country has natural resources or talents that allow it to produce an item at the lowest cost possible.
Absolute Advantage
A total ban on specific goods coming into and leaving a country.
Embargo
A tax on imports (sometimes called a duty).
Tariff
A government’s est. of economic policies that systematically restrict imports in order to protect domestic industries.
Protectionism
A business enterprise that a domestic company and a foreign company undertake together.
Joint Venture
