Intro to Business Ch. 3 Quest

domestic business
the making, buying, and selling of goods and services within a country
international business
business activities needed for creating, shipping, and selling goods and services across national borders
foreign trade
international business
absolute advantage
a country can provide a good or service at a lower cost than other countries
comparative advantage
a country specializes in the production of a good or service at which it is relatively more efficient
items bought from other countries
goods and services sold to other countries
foreign debt
the amount a country owes to other countries
balance of trade
the difference between a country's total exports and total imports
trade surplus
a country exports more than it imports
trade deficit
a country imports more than it exports
balance of payments
the difference between the amount of money that comes into a country and the amount that goes out of it
positive balance of payments
a nation receives more money in a year than it pays out
negative balance of payments
a country sends out more money than it brings in
Russian currency
European Union currency
Brazilian currency
Indian currency
Saudi Arabian currency
foreign exchange market
the process of exchanging one currency for another occurs here
exchange rate
the value of a currency in one country compared with the value in another
interest rates
the cost of using someone else's money
the accepted behaviors, customs, and values of a society
a factor that supports international trade in industrialized countries, including a nation's transportation, communication, and utility systems
trade barriers
restrictions to free trade
a limit on the quantity of a product that may be imported or exported within a given period
a tax that a government places on certain imported products
when a government stops an export or import of a product completely
free-trade zone
a selected area where products can be imported duty-free
free-trade agreement
member countries agree to remove duties and trade barriers on products traded among them
common market
members do away with duties and other trade barriers
economic community
another word for common market
multinational company
an organization that does business in several countries
home country
where the MNC parent company is located
host country
the country where MNC places business activites
global strategy
the same product and marketing strategy worldwide
multinational strategy
each country market is treated differently
selling the right to use some intangible property (ex: trademark or brand name)
the right to use a company name or business process in a specific way
joint venture
an agreement between two or more companies to share a business project
World Trade Organization
promotes world trade around the world; settles trade disputes and enforces free-trade agrements
International Monetary Fund
helps to promote economic cooperation
World Bank
gives economic aid to less developed countries
International Development Association
makes loans to help developing countries
International Finance Corporation
provides capital and technical help to private businesses in nations with limited resources