Exam Flashcards
Exchange involving goods or services
International trade
Brought into the domestic country
Import
Sold to foreign country
Export
According to him a country enjoys a comparative advantage in production if the resources are abundantly available within the country
Hecksher ohlin model
A tax or duty that government charges on goods coming into or going out of their country
Excise that is paid on the sale of imported goods
Tariff
A restriction on the quantity of a good that be imported into a country
Import quota
The first purpose theory of comparative advantage
English political economics
David Ricardo
Theory that a nation has absolute advantage when it can produce a larger amount of a good or service
Absolute advantage
Scottish economics
First describe the principle of absolute advantage in the context of international trade in 1776
Adam Smith
Does not restrict imports or exports allows traders without coercive inference from governmentt
Free trade
Foreign companies can produce or offer goods in services more cheaply
Price
Company sub road can offer good in services of a superior quality
Quality
Impossible to produce that product domestically
Availability
Demand for a product or service
Demand
Theorem indicates that an increase in the price of a product rises
Stopler samuelson
Subfield of economics
Trade theory
Ideas customs and social behaviors
Culture
Who are looking to operate internationally need to be aware of language barriers tone and body language
Business communication
Have a different approach towards workplace confrontation rules and regulation and working hours
Workplace etiquette
Encompasses organizational culture as well as national cultures and tradition
Cultural adaptation
Companies must this place in sitivity towards different cultures
Entry into new markets
Sign a contract between two parties
Business negotiation
Individuals racing sense to interacting with other
Personal style
Consisus decision making
Team organization
Welcomes cross cultural people, ideas, and custom create a benchmark as an exclusive in diverse work space
Inclusion and diversity
Unique management models and practices
Adapting management
Predicts the country will export those goods
H o model
Extension of the ricardian model
Specific factors
Model does not directly consider factor endowment
Ricardian model
Advantage
Competition
Comparative advantage
Economies of scale
Transfer of technology
More job creation
Disadvantage
Overdependence
Unfair to new companies
Threat to national security
Pressure on natural resources
Importing goods from one country in exporting
Entrepot
An exercise that is paid on the sale of importing goods
Tariff
Is the field of economics that is concerned with economic interaction
International economies
Ability of a party (an individual or firm or country)
Absolute advantage
