Vocab
Making, buying, and selling of goods and services within a country
What is domestic business?
A limit on the quantity of a product that may be imported or exported within a given period
What is quota?
Brazil can produce coffee a lower cost than the rest of the world. What type of advantage is this?
What is Absolute Advantage?
Mode of entry that involves selling a product or service
what is franchising?
The difference between a country’s total exports and total imports.
What is balance of trade?
Creating, shipping, and selling goods and services across national borders.
What is international business?
A tax that a government places on certain imported products
What is tariff?
taly is relatively more efficient at producing wine, cheese and tomatoes than other countries and will need to perform an opportunity cost analysis to determine which product to produce. What type of advantage is this?
What is Comparative advantage?
Moe of entry that is a low financial investment and has low risk
What is licensing?
The difference between the amount of money that comes into a country and the amount that goes out of it.
What is balance of payment?
System by which many companies and nations are economically dependent upon each other
What is global dependency or interdependent?
Stopping the export or import of a product completely
What is embargo?
The loss of potential gain from other alternatives when one alternative is chosen.
What is opportunity cost?
Mode of entry with very little control and must be done a specific way
What is franchising?
The way a country achieves a favorable balance of trade.
What is trade surplus?
A company uses the same product and marketing strategy worldwide.
What is global strategy?
Trade barrier used to protect one of a country’s industries from too much competition from abroad
What is quota?
The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity
What is comparative advantage?
An agreement between 2 or more companies to share a business project
What is joint venture?
When imports are more than exports.
What is trade deficit?
Firms develop products and marketing strategies that adapt to the customs, tastes, and buying habits of a distinct national market
Wat is multinational strategy?
A trade barrier used to lower the demand for a product and reduce the quantity of that import.
What is a tariff?
The ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
What is absolute advantage?
Mode of entry that involves intangible property
what is licensing?
Mazda sets up assembly plants for Ford Vehicles
What is joint venture?