VOCABULARY
INTERNATIONAL BUSINESS BASICS
INTERNATIONAL BUSINESS ORGANIZATIONS
INTERNATIONAL BUSINESS ENVIRONMENT
INTERNATIONAL TRADE
100

Imports and Exports

What are goods and services purchased from other countries?

What are goods and services sold to other countries?

100
What affects the value of currency?
Supply and demand
100
What are the four main elements of the international business environment?
Geography, Economics, Culture, Political- Legal factors
100
What are the three common formal trade barriers?
Quotas, tariffs, and, embargoes
200

Balance of trade

What is the difference in value between a nation’s exports and its imports.

200

This causes a trade deficit in a country

What is importing more than exporting

200
A marketing strategy where companies treat each market differently
What is a multinational strategy
200
This component of the international business environment includes mountains and rivers
What is geography
200
What's the difference between a formal trade barrier and an informal trade barrier?
A formal trade barrier is created by the government and informal trade barriers are created by the culture of the country
300

Multinational corporation (MNC).

What business operates on a worldwide scale, without significant ties to any one nation or region?

300

1. What is a balance of payments?


1.What is the difference between the flow of money into and out of a country?


300
The three methods commonly used to expand to new markets
What are licensing, joint-ventures, and franchising
300
What are the key effects on a country's level of economic development?
Literacy level, technology, agricultural dependency
300
An _____ can be created by government actions.
What is an information trade barrier
400

Joint venture (3parts)

What is a 1) partnership between a foreign company and a domestic business or government because 2) many countries do not permit direct investment by foreign companies or individuals and a 3) company may lack sufficient resources or expertise to operate in another country?

400
What are the three main factors that affect currency exchange rates among countries?
The country's balance of payments, economic conditions, and political stability
400
An international trade organization created in 1995 to encourage free trade
What is the World Trade Orginization
400
What are the six factors of culture?
language, family, religion, customs, traditions, food
400
A company is planning to sell the rights to its brand name for use in other countries. This is an example of _____
What is Licensing
500

Infrastructure (3 parts)

What is the physical facilities that support a country’s economic activities such as transportation, communication, utility systems, hospitals and schools.

500

Absolute advantage (3 parts)

What is a monopoly that exists when a country is the 1) only source of an item, the 2) only producer of an item, or 3) the most efficient producer of an item?

500
An international trade organization created after WWII to provide loans for rebuilding
What is World Bank
500
How does the agricultural dependency influence the economy? explain.
If a country is largely involved in agriculture then it usually does not have the manufacturing base to provide citizens with great quantity and high quality of a product.
500

Comparative advantage (2 parts) 

What is the basis of most international trade, when a country specializes in products that it can 1) supply more efficiently or 2) at a lower cost than it can produce other items.

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