Chapter 3 - Exploring Global Business Flashcards
Revenue tariff
To generate income for government
Tariff
A tax on imports
Protective tariff
To protect domestic industries from competition
Import quota
A limit on the amount of a certain good that may be imported into a country
Embargo
A complete stop to trading with a particular nation or product
Foreign exchange control
Restriction on the amount of foreign currency that can be produced or sold
Currency devaluation
The reduction of the value of the nations currency relative to other countries
Bureaucratic red tape
Making unnecessary burdensome and complex rules for imports
Cultural attitudes
Certain products are not acceptable to bring into some countries
International free-trade agreements
To promote free trade and reduce barriers
General Agreement on Trade and Tariffs (GATT)
International organization of 153 nations dedicated to reducing or eliminating tariffs among other members. Now World Trade Organization (WTO)
Economic communities
An organization of nations who join together to promote the free movement of resources and products among its members
(OPEC)
Organization of petroleum exporting countries
(NAFTA)
North American Free Trade Agreement
International business
All business activities that involve exchanges across national boundaries
Absolute advantage
Ability to produce a certain product more efficiently than any other nation
Corporate advantage
Ability to produce a specific product more efficiently than any other product
Exporting
Selling and shipping raw materials or products to other nations
Importing
Purchasing raw materials or products in other nations and bringing them into one’s own country
Balance of trade
Total value of nation’s exports minus total value of imports over a period time
Trade deficit
Negative balance of trade
Balance of payments
Total flow of money into a country minus the total flow out over some period of time