Trade Basics & Barriers
What are imports?
Goods brought into a country
What is a domestic business?
A business that sells only inside its own country
What are some MNC(Multinational company) benefits?
Jobs, investments, and access to new technologies
What is absolute advantage?
When a nation produces more efficiently than others
What is the WTO(World Trade Organization)?
An organization that helps nations settle trade disputes and set global trade rules
Goods sent out of a country to be sold abroad are called what?
Exports
What is international business/world trade?
Buying and selling across national borders is called this
What are some MNC(Multinational Company) drawbacks?
Local businesses struggling and profits leaving the host country
What is comparative advantage?
When a nation specializes in what it produces best relative to others
This group maintains currency stability and helps nations in financial crises's
The International Monetary Fund
A tax on imports meant to protect domestic industries is called what?
Tariff
A company that operates in more than one country is called what?
A multinational company
What is licensing?
Allowing another company to use your trademark or patent for a fee
The difference between a nation's exports and imports is what?
Balance of trade
What is the World Bank?
A limit on the number of products allowed into a country is called what?
Quota
What are common markets?
A group of nations that reduces trade barriers and allows the free flow of goods
What is franchising?
Letting another business use your company name and model, like McDonald's
What is the balance of payments?
The total of everything, imports vs. exports (money going in vs. money going out
Balance of payments, political stability, and economic conditions
What is an embargo?
A total ban on trade with another nation
A pact that reduces barriers and increases trade among member nations is called what?
Free trade agreement
Two or more companies from different countries forming a shared business is called what?
Joint Venture
The value of one nation's currency compared to another is called what?
Exchange rate
What are the 4 keys to international business?
Geography, economy, culture, and politics/law