chapter 3: international business

Question 1

international business

Question 2

global marketing

Question 3

why trade?

Question 4

absolute advantage

Answer 4

(monopoly, monopolistic)

Question 5

comparative advantage

Question 6

outsourcing

Question 7

insourcing

Question 8

exporting

Question 9

importing

Question 10

balance of trade

Answer 10

the difference in a countries imports and exports

Question 11

trade deficit

Answer 11

when a country imports more than they export
(buy more than they sell)

Question 12

trade surplus

Answer 12

when a country exports more that they import
(sell more than they buy)

Question 13

balance of payment

Answer 13

the difference between the money going into and out of a country
ie. the summation of a countries spendings and earning
made up of: military spending, international aid and investments, tourism, loans, BALANCE OF TRADE

Question 14

international trade barriers

Question 15

barriers to international trade

Answer 15

economics, legalities, politics, technological background
social and cultural (ethical)

Question 16

economic development

Answer 16

industrial nation
LDC (least-developed country)

Question 17

LDC (least developed country)

Answer 17

characterized by low- per capita income (income from export of goods and services over population size)
citizens are less-likely to buy non-essentials
less infrastructure and technological development
when trading, need to consider basic distribution and communication and lack of technology

Question 18

infrastructure

Question 19

exchange rates

Question 20

fiscal policy

Answer 20

government involvement in influencing the economy (through taxes and spending)

Question 21

devaluation

Answer 21

the purposeful lowering of the value of a countries currency
done through fiscal policy

Question 22

ethical, legal and political barriers

Answer 22

companies need to consider:
domestic laws (ie. laws of US)
international laws
host country laws (laws of the country the company is looking to do business in)

also look at: political climates, trade restrictions and different ethical values

Question 23

laws and regulations