The Global Marketplace

Question 1

NAFTA

Answer 1

North American Free Trade Agreement. NAFTA’s purpose is to encourage economic activity between the United States, Mexico and Canada. It eliminated most tariffs.

Question 2

Countertrade

Answer 2

International trade in which goods are exchanged for other goods, rather than for hard currency.

Question 3

Product Adaptation

Answer 3

Adapting a product to meet local conditions or wants in foreign markets

Question 4

Product Extension

Answer 4

Marketing a product in a foreign market without making any changes to the product

Question 5

Dumping

Answer 5

In international trade, the export by a country or company of a product at a price that is lower in the foreign market than the price charged in the domestic market.

Question 6

Price Fixing

Answer 6

Establishing the price of a product or service, rather than allowing it to be determined naturally through free-market forces.

Question 7

Industrializing

Answer 7

the large-scale introduction of manufacturing, advanced technical enterprises, and other productive economic activity into an area, society, country, etc.

Question 8

Industrial

Answer 8

the process of making products by using machinery and factories

Question 9

Subsistence

Answer 9

the source from which food and other items necessary to exist are obtained.

Question 10

Barter

Answer 10

exchange (goods or services) for other goods or services without using money.

Question 11

Glocal

Answer 11

reflecting or characterized by both local and global considerations.

Question 12

Quota

Answer 12

a limited or fixed number or amount of people or things, in particular.

Question 13

Tariff

Answer 13

a tax or duty to be paid on a particular class of imports or exports.

Question 14

Embargo

Answer 14

an official ban on trade or other commercial activity with a particular country.

Question 15

GATT

Answer 15

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade. GATT was signed in 1947 and lasted until 1994, when it was replaced by the World Trade Organization in 1995

Question 16

European Union

Answer 16

The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe.

Question 17

Gray Market

Answer 17

An unofficial market where securities are traded. Gray (or “grey”) market trading generally occurs when a stock that has been suspended trades off-market, or when new securities are bought and sold before official trading begins. The gray market enables the issuer and underwriters to gauge demand for a new offering because it is a “when issued” market, i.e. it trades securities that will be offered in the very near future. The grey market is an unofficial one, but is not illegal.

Question 18

Joint Venture`

Answer 18

Entering foreign markets by joining with foreign countries to produce or market a product or service

Question 19

Licensing

Answer 19

Entering a foreign market through developing an agreement with a license in the foreign market

Question 20

Importing

Answer 20

A good or service brought into one country from another.

Question 21

Exporting

Answer 21

A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade.

Question 22

Contract Manufacturing

Answer 22

A joint venture in which a company contracts with manufacturers in a foreign market to produce the products or provide its service

Question 23

Direct Investment

Answer 23

Entering a foreign market by developing foreign based assembly or manufacturing facilities