International Bus. Basics
Two economics principles used to determine the goods or service traded by each country.
Absolute and comparative advantages
Making, buying, and selling of goods and services within a country.
Domestic business
The government sets a limit on the quantity of products that can be imported or exported by the country.
Quota
Creating, shipping, and selling goods and services across national border.
International business
Name the three modes used to enter the global market.
Franchising, licensing, and Joint ventures
The U.S. conducts trade with more than how many countries.
180
A country specializes in the production of a particular good or service.
Comparative advantage
A tax that the government places on imported products, in order to increase the price of the imported goods and reduce imports.
Tariff
Selling goods and services to other countries.
Importing
An organization that does business in more than one country.
Multinational corporation
A country can produce goods or service at a lower cost than other countries.
Absolute advantage
If a country exports more than it imports, is has a ____________ ________________.
Hint: 2 words
Trade Surplus
The 3 main formal trade barriers are
quotas, tariffs, and embargoes
The U.S. imports more than it exports, this is called a ____________ ____________.
Hint: 2 words
Trade deficit
This type of business gives license/permission to an entrepreneur to used their business name and product to operate a business. You have to pay the owner royalties.
Franchise
The difference between a countries total exports and total imports.
Balance of trade
The result of a country sending more money out than it brings in.
Unfavorable or negative balance
Three things put in place to improve international trade.
Free trade zone, common market, and free-trade agreements
The value of one country's currency compared with the currency of another country.
Exchange rate
Name the three international trade organizations that assist countries in trading globally.
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
The difference between the amount of money that comes into a country and what goes out of it.
Hint: 3 words
Balance of payments
A nation's transportation, communication and utility system is called __________.
Infrastructure
Free-trade agreement between the U.S., Mexico and Canada
NAFTA
An economic community or market in which member countries do away with custom duties and trade barriers.
Common market
This international trade organization settles trade disputes, lowers tariffs and encourages free trade.
World Trade Organization (WTO)