Create an account
Any activity that seeks to provide goods and services to others across national borders at a profit
The movement of goods and services amongs nations without political or economic trade barriers
Comparative advantage theory
A theory that states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products that it cannot products as effectively or efficiently
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
Balance of trade
The total value of a nation's exports compared to its imports measured over a particular period
A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports
An unfavorable balance of trade; occurs when value of a country's imports exceeds that of its exports
Balance of payments
The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors, such as tourism, foregin aid, military expenditures, and foreign investment
Selling products in a foreign country at lower prices than those charged in the producing country
The flow goods in a distribution channel or channels other than those intended by the manufacturer or licensor
Harmonized tariff schedule
A schedule of costs for every product from every country that is published by the U.S. government
A protectionist policy that limits the number of products in certain categories that a natin can import
A complete ban on the import or export of a certain product o the stopping of all trade with a particular country
Restrictive standards that details exactly how a product must be sold in a country
General agreement on tariff and trade (GATT)
A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions
World trade orgaization (WTO)
The international organization that replaced the General Agreement on Tariffs and Trade and was assigned the duty of mediating trade disputes among nations
Common market (trading bloc)
A regional group of countries that have a common external tariff, no internal tariffs, and coordinated laws that aid trade among member countries
European union (EU)
A agreement among European member countries to eventually reduce all barriers to trade and become unified, both economically and politically
The organization of the petroleum exporting countres (OPEC)
An organization of 13 oil producing nations that work together to protect their interests
North american free trade agreement (NAFTA)
An agreement that created a free trade area among the United State, Canada,and Mexico
A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty)
A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing
A partnership in which two or more companies (often from different countries) undertake a major project
A form of foreign direct investment in which a company builds factories and offices in a foreign country on its own
A long term partnership between two or more companies established to help each company build competitive market advantage
A company owned in a foreign country by another company,called the parent company
An organization that manufactures and markets products in many different countries and has multinational management
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together