Global Trade in The U.S.
The ability to recognize and react to international business opportunities, be aware of threats from foreign competition, and effectively use international distribution networks to obtain raw materials and move finished products to customers.
global vision
Companies are paying more for insurance and to provide security for overseas staff and property. Heightened border inspections slow movements of cargo, forcing companies to stock more inventory. Tighter immigration policies curtail the liberal inflows of skilled and blue-collar workers that allowed companies to expand while keeping wages in check. These are all due to ___________
Terrorism
Goods and services produced in one country and sold to other countries.
Exports
A tax imposed on imported goods.
tariff
The policy of permitting the people and businesses of a country to buy and sell where they please without restrictions.
Free trade
The practice of charging a lower price for a product in foreign markets than in the firm’s home market.
Dumping
The difference between the value of a country’s exports and the value of its imports during a specific time.
balance of trade
A lowering of the value of a nation’s currency relative to other currencies.
devaluation
Goods and services that are bought from other countries.
imports
Tariffs that are imposed in order to make imports less attractive to buyers than domestic products are.
Protective tariffs
The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas.
protectionism
A 1994 agreement originally signed by 117 nations to lower trade barriers worldwide.
Uruguay Round
A system in which prices of currencies move up and down based upon the demand for and supply of the various currencies.
floating exchange rates
A summary of a country’s international financial transactions showing the difference between the country’s total payments to and its total receipts from other countries.
balance of payments
A country that imports more than it exports is said to have an unfavorable balance of trade, or a
trade deficit
A limit on the quantity of a certain good that can be imported.
import quota
The situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide the product.
absolute advantage
An organization established by the Uruguay Round in 1994 to oversee international trade, reduce trade barriers, and resolve disputes among member nations.
World Trade Organization
improves relations with friends and allies, eases tensions among nations, helps bolster economies, raises people’s standard of living, and improves the quality of life.
International trade
We export a ________ of our industrial production and about a ________ of our farm crops.
fifth, third
(those with mature communication, financial, educational, and distribution systems)
developed nations
A total ban on imports or exports of a product.
embargo
The concept that each country should specialize in the products that it can produce most readily and cheaply and trade those products for those that other countries can produce more readily and cheaply.
principle of comparative advantage,
An international bank that offers low-interest loans, as well as advice and information, to developing nations.
World Bank
The United States now has both a ______ balance of trade and a __________balance of payments.
negative
A country that exports more than it imports is said to have a favorable balance of trade, called a
trade surplus
What impact does international trade have on the U.S. economy?
Government rules that give special privileges to domestic manufacturers and retailers.
buy-national regulations
Sending work functions to another country, resulting in domestic workers losing their jobs.
outsourcing
International Monetary Fund (IMF)
International Monetary Fund (IMF)