Chapter 1 & 2 Flashcards
Balance of Payments
The system of accounts that records a nation’s international financial transactions
Current Account
The portion of a balance-of-payments statement that shows a record of all merchandise
(exports, imports, and services, plus unilateral transfer of funds)
GATT
stands for General Agreement on Tarriffs and Trade was a trade agreement signed by the United States and 22 other countries shortly after WWII to negotiate tariffs and other matters regarding trade
International Monetary Fund (IMF)
A global institution helping nations stay economically viable. It helps with stability in the financial markets and used in the United Nations.
Nontariff barriers
Restrictions, other than tariffs, placed by countries on imported products
(they may include quality standards, sanitary and health standards, quotas, embargoes, boycotts, and antidumping penalties)
Protectionism
The use by nations of legal, exchange, and psychological barriers to restrain entry of goods from other countries
Tariff
A fee or tax that countries impose on imported goods, often to protect a country’s markets from intrusion from foreign countries
Voluntary Export Restraints (VERs)
Agreements, similar to quotas, between an importing country and an exporting country for a restriction on the volume of exports. Also known as orderly market agreements (OMAs).
World Trade Organization (WTO)
The organization formed in 1994 that encompasses the GATT structure and extends it to new areas that had not been covered previously. The WTO adjusts trade disputes. All member countries have equal representation.
National Trade Data Bank (NTDB)
created to improve access to data & trade
Controllable elements
The aspects of trade over which a company has control and influence;
Include marketing decisions covering
- product
- price
- promotion
- distribution
- research
- advertising
Domestic environment uncontrollables
Factors in a company’s home country over which the company has little to no control or influence.
Thay include
- political
- legal
- economic climate
- technology
- competitive forces
- economic forces
Foreign environment uncontrollables
Factors in the foreign market over which a business operating in its home country has little or no influence.
They include
- legal
- economic climate
- geography
- infrastructure
- structure of distribution
- technology
Global Awareness
A frame of reference, important for the success of a businessperson, that embodies tolerance of cultural differences and knowledge of cultures, history, world markets, and global socio-economic and political trends
International marketing
The performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to make profit