Chapter 4 Competing in World Markets Flashcards
What is SOFT CURRENCIES?
currencies that cannot be readily converted.
What is INFRASTRUCTURE?
basic systems of communication, transportation and energy facilities in a country.
What is TARIFFS?
taxes, surcharges, or duties on foreign products.
What is REVENUE TARIFFS?
generate income for the government
What is PROTECTIVE TARIFFS?
seek to limit imports and level the playing field for local competitors.
What is QUOTAS?
limit set on the amounts of particular products that countries can import during specified time periods.
What is DUMPING?
selling products abroad at prices below production costs.
What is HARD CURRENCIES?
easily convert into other currencies
What is EMBARGO?
total ban of importing specific products
What is GATT
GENERAL AGREEMENT ON TARIFFS AND TRADE-reduced worldwide tariffs and other barriers
What is WTO?
WORLD TRAD ORGANIZATION-institution that monitors GATT agreements and mediates international trade disputes
What is WORLD BANK?
organization established by industrialized nations to lend money to less-developed countries
What is IMF?
INTERNATIONAL MONETARY FUND-organization created to promote trade, eliminate barriers, and makes short-term loans
What is NAFTA?
INTERNATIONAL ECONOMIC COMMUNITIES-agreement among the United States, Canada, and Mexico to break down tariffs and trade restrictions
What is EU?
EUROPEAN UNION-28 nation economic alliance
What is COUNTERTRADE?
barter agreement whereby trade between 2 or more nations involves payment made in the form of local products instead of currency
What is FOREIGN LICENSING?
one firm allows another to produce or sell its product, use its trademark, patent in return, the firm gets a royalty
What is MNC?
MULTINATIONAL CORPORATION-an organization with significant foreign operations other than their own
What is GLOBAL BUSINESS ( STANDARDIZATION ) STRATEGIES?
offering a standardized and selling it in the same manner throughout a firm’s domestic and foreign markets
What is MULTI-DOMESTIC BUSINESS ( ADAPTATION ) STRATEGY?
developing and marketing products to serve different needs and tastes of separate national markets
What is JOINT VENTURE?
partnership between companies formed for a specific undertaking
What is EXPROPRIATION?
When the country seizes the assets from a company
