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15 terms

Vocab. Quiz 1 - International Business

This quiz covers vocabulary learned from Day 1 through Day 4 of International Business Unit Plan. SEED 450
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International Business
Includes all of the business activities necessary for creating, shipping, and selling goods and services across national borders
Exporting
The selling and shipping of products to another country
Importing
The commercial activity of buying and bringing in goods from a foreign country
Free Trade
The movement of goods and services among nations without political or economic barriers.
Comparative Advantage
The ability to produce a product most efficiently given all the other products that could be produced
Absolute Advantage
The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.
Management Contracting
Also known as outsourcing, where a foreign country produces a private-labeled good to which a domestic company then attaches its brand name or trademark
Licensing
Occurs when a firm (the licensor) grants a foreign entity (the licensee) the right to produce its product, use its production processes, or use its brand name or trademark in return for a royalty fee on every unit sold
Franchising
An organization gives another organization the right to use its name and operating methods.
Joint Venture
A partnership between a domestic firm and a foreign firm or government to undertake a major project
Foreign Direct Investment
Practice of buying permanent property and businesses in foreign nations.
Foreign Subsidiary
A company owned in a foreign country by another company, called the parent company.
Balance of Trade
The difference between a country's total exports and total imports
Trade Deficit
When a country imports more than it exports
Dumping
Selling products in a foreign country at lower prices than those charged in the producing country