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refers to the chance of giving up the second-best choice when making a decision
Opportunity cost
It is a basic measure of the difference between a nation's exports and imports.
Balance of Trade
Measure the value of one nation's currency relative to the currency of other nations.
Exchange Rate
Taxes levied against imports
Tariffs
The unrestricted movement of goods and services across international borders
Free Trade
is the benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources.
absolute advantage
is the overage that occurs when the total value of a nation's exports is higher than the total value of its imports.
Trade Surplus
Buying products from overseas that have already been produced, rather than contracting with overseas manufacturers to produce special orders.
Importing
Limitations on the amount of specific products that may be imported from certain countries during a given time period
Quotas
A group of countries that have eliminated tariff and harmonized trading rules to facilitate the free flow of goods among the member nations
Common Market
It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
Comparative Advantage
If the total value of imports is higher than the total value of exports, the country has a(n) ____
Trade Deficit
In the context of the various strategies for reaching global markets, _____ is producing products domestically and selling them abroad.
Exporting
It means contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production.
Foreign Outsourcing
A group of countries that have reduced or even eliminated tariffs, allowing for the free flow of goods among the member nations
Trading Bloc
Overage that occurs when more money flows into a nation than out of a nation
Balance of Payments Surplus
Measure of the total flow of money into or out of a country.
Balance of Payments
A voluntary agreement under which two or more people act as co-owners o a business for profit
Partnership
involves a domestic firm granting a foreign firm the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.
Foreign Licensing
When two or more companies join forces such as sharing resources, risks, and profits, but not actually merging companies to pursue specific opportunities
Joint Ventures
Shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports
Balance of Payments Deficit
Refers to international trade that involves the barter of products for products rather than for currency
Countertrade
An agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses. Less formal, less encompassing agreements than partnerships
Strategic Alliance
is a specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements
Foreign Franchising
National policies designed to restrict international trade, usually with the goal of protecting domestic business
Protectionism