Selling Overseas
The rapid and unimpeded flow of capital, labor, and ideas across national borders
Globalization
Arrangements between nations that provide for favorable trade relations
Trade Agreements
A tax levied by a government on imports
Tariff
An association of European countries with uniform trade rules that eliminated all barriers and restrictions on the movement of goods and services among member nations
European Union (EU)
A belief or quality that a brand stands for and is built around
Brand Value
The process of selling goods and services to individuals, businesses, or governments in other countries.
Exporting
An unfavorable balance of trade in which a nation’s imports are greater than its exports
Trade Deficit
The difference between all monies coming into and going out of a country
Balance of Payments
A term referring to the ideological separation of East and West during the Cold War
Iron Curtain
The advantage achieved by a nation from specializing in and producing goods and services at which it is most efficient, relative to another country.
Comparative Advantage
A business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted (e.g., logo, name), or patented material for a specific activity, during a specific time period, for the profit of both parties.
Licensing
Meetings among nations to discuss improving economic and trade relations
Trade Talks
The money that developed countries give to less developed countries to help with their economic development
Foreign Aid
An agreement among the United States, Canada, and Mexico eliminating all of their trade barriers
North American Free Trade Agreement (NAFTA)
The difference between the value of a nation’s exports and its imports
Balance of Trade
The direct ownership of facilities in a target country and involves the transfer of resources including capital, technology, and personnel.
Direct Investment
A favorable balance of trade in which a nation’s exports are greater than its imports
Trade Surplus
A rapid rise in prices, usually occurring when demand exceeds supply
Inflation
A global organization that essentially sets the rules of trade among nations; administers trade agreements and handles trade disputes
World Trade Organization (WTO)
The advantage achieved when a nation can produce a good or service at a lower cost than another nation
Absolute Advantage
An arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels, for the benefit of all parties
Joint Venture
Facilities located in most major cities throughout the world that assist exporters through the export process and share information about tariffs, product standards, and other regulations with importers
Trade Centers
A payment provided by a government to a domestic producer; the payment is given to support the production of a particular good or service
Subsidy
A state of heightened tension that existed between the Eastern and Western parts of the world, lasting from the end of World War II until approximately 1991
Cold War
The situation that exists when a country or region loses its most talented, educated employees to jobs in other countries
Brain Drain