M Now Ch 5 Flashcards
International Trade
The exchange of foods and services by different countries. PERRIER AND EVIAN DO INTERNATIONAL TRADE!
Absolute Advantage
The ability to produce more of a good than another producer with the same quantity of inputs.
Law of Comparative (jämförande) Advantage
Axiom that producers should produce the goods they are most efficient at producing and purchase from others the goods they are less efficient at producing.
Exports
Goods and services that are sold abroad.
Imports
Goods and services purchased (köpt) abroad.
Diversification
Olikhet
Engages in a variety of operations.
Balance of Trade
Difference between the value of goods an country exports and the value of goods it imports.
Tariff
Government-imposed tax on goods imported into a country.
Quotas
Restrictions on the quantity of a good that can enter the country.
Embargo
A ban (bannlysa) on exports to or imports from a foreign country.
Free Trade Area
A region within which trade restrictions are reduced or eliminated.
North American Free Trade Agreement (NAFTA)
Treaty (avtal) that allows businesses in the United States, Mexico, and Canada to sell their products anywhere in North America without facing major trade restrictions.
Foreign Intermediary (mellanhand)
A wholesaler or agent that markets products for companies wanting to do business abroad.
Licensing Agreement
An agreement that permits one company to sell another company’s products abroad in return for a percentage of the company’s revenues.
Strategic Alliance
An agreement by which companies pool resources and skills in order to achieve common goals.
