Unit 5 Flashcards
the connection made among nations when economies freely move goods, labor, and money across borders
Globalization
the shared beliefs, customs, practices, and social behavior of a particular group or nation
Culture
buying and selling of goods and services across national borders
International trade
all the business activity involved in making buying and selling products within national borders
Domestic Business
goods and services that are produced within a countries borders, and sold in another country
exports
goods, services, and capital that are brought into a country from outside its borders
imports
when a country can produce goods more efficiently and at a lower cost than another country
Absolute Advantage
when a country specializes in producing a product at which it is relatively more efficient
comparative advantage
the difference between a nation’s exports and imports
balance of trade
the total amount of money that comes into a country minus the total amount that goes out for a specific period of time.
balance of payments
the cost to convert one currency into another
foreign exchange rate
its exchange rate is set by the market forces of the supply and demand in the foreign exchange market
floating currency
the body of laws related to the exchange of goods and services for international trade.
trade policy
any gov. action taken to control or limit the amount of imports
trade barrier
gov. order that prohibits trade with a foreign country
embargo
embargoes that affect only certain goods
trade sanction
gov. tax on imported goods
tariff
a limit on the amount of product imported into a country during a specific period of time
quota
a doc. listing the conditions and terms for importing and exporting products between countries
trade agreement
a group of countries that has joined together to trade as if they were a single country
trading bloc
planning and managing the flow of goods services and people to a destination
logistics
having people from different backgrounds cultures or demographics coming together in a group
diversity
the process of sending and receiving messages between people of various cultures
intercultural communication
the use of English by people with a different native language
English as a Second Language.
a business that operates in more than one country
multinational corperation
when a business sells the right to manufacture its products or use its trademark
licensing
the right to sell a company’s goods or services in a specific area
franchise
the parent company that owns the chain and the brand
fraanchisor
the person or company that buys the rights to use the brand
franchisee
a partnership of 2 or more companies that work together for a specific business purpose
Joint Venture
