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BMGT 110

strategic alliance

A long-term partnership between two or more companies, a ________________ is established to help each company build competitive market advantages

tariff

A tax known as a ________ is imposed on imports

dumping

The practice of selling products in foreign countries at lower prices than you charge for the same products in the producing country is known as __________

absolute advantage

A country has a(n) _________when it has a monopoly on the production of a specific product or is able to produce it more efficiently than all other countries.

Balance of payment

The difference between money coming into a country and money leaving the country plus money-flows from other factors such as tourism, foreign aid, military expenditures and foreign investment is the _____________

Embargo

A(n) ________is a complete ban on the import or export of a certain product or when all trade with a particular country has been stopped.

import quota

When there is a limit on the number of products in certain categories that can be imported, a(n) _______has been established.

trade deficit

n unfavorable balance of trade, or _________occurs when the value of a country's imports exceeds that of its exports.

balance of trade

A nation's ________is its ratio of exports to imports.

exchange rate

The _________is the value of one currency relative to the currencies of other countries.

importing

A country is involved in _________when it is buying products from another country.

joint venture

In a __________a partnership has been formed in which two or more companies, often from different countries, have joined to undertake a major project.

licensing

A global strategy known as _______is one in which a firm allows a foreign company to produce its product in exchange for a fee.

common market

The European Union is an example of a ______, a regional group of countries that have no internal tariffs, a common external tariff and a coordination of laws to facilitate exchange between countries. It is also known as a trading block.

exporting

A company is involved in ______when it is selling products to another country

multinational corporation

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management is a(n)_____________

comparative advantage theory

The theory of ____________asserts that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from those other countries those products that it cannot produce as effectively and efficiently

contract manufacturing

Also known as outsourcing, ________occurs when a foreign country produces private-label goods to which a domestic company then attaches its brand name or trademark.

Devaluation

Lowering the value of a nation's currency relative to other currencies is known as__________

free trade

There is ______when the movement of goods and services among nations occurs without political or economic obstruction.

trade protectionism

The use of government regulations to limit the import of goods and services is considered to be _________, which advocates believe will allow domestic producers to survive and grow, producing more jobs.

counter trading

A complex form of bartering known as _________occurs when several countries each trade goods for goods or services for services

foreign direct investment

Many countries today are involved in ____________

foreign subsidiary

A ________is a company that is owned in a foreign country by another company called the parent company.

World Trade Organization

This organization, known as the __________, replaced the GATT agreement and was assigned the duty to mediate trade disputes among nations.

North American Free Trade Agreement (NAFTA)

The agreement known as the _______________created a free trade agreement between the United States, Canada, and Mexico.

General Agreement on Tariffs and Trades (GATT)

The agreement signed in 1948 called the ___________ established an international forum for negotiating mutual reductions in trade restrictions.

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