Chapter 4: International Business Spring 2018
Terms in this set (18)
Process by which the world economy is becoming a single interdependent system ( A system where countries depend on other countries)
Product made or grown abroad but sold domestically
Products made or grown domestically but shipped & sold abroad
North American Free Trade Agreement (NAFTA)
Removes tariffs & other trade barriers among the United States, Canada, & Mexico. Also includes agreements on environmental issues and labor abuses.
European Union (EU)
Agreement among major European nations to eliminate or make uniform most trade barriers affecting group members.
World Trade Organization (WTO)
Organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices.
Balance of Trade
Economic value of all products a country exports minus the economic value of all products it imports.
Situation in which a country's imports exceed its exports, creating a negative balance of trade
Situation in which a country's exports exceed its imports, creating a positive balance of trade.
Rate at which the currency of one nation can be exchanged for the currency of another nation
The practice of paying suppliers & distributors to perform certain business processes or to provide needed materials or services
The practice of outsourcing to foreign countries
Foreign Direct Investment
Involves buying or establishing tangible assets in another country.
Restriction on the number of products of a certain type that can be imported into a country
Government order banning exportation or importation of a particular product or all products from a particular country
Tax on imported products
Government payment to help a domestic business compete with foreign firms
Practice of protecting domestic business against foreign competition