Business Chapter 3

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  1. All business activites that involve exchanges across national boundaries.
    International business
  2. The ability to produce a specific product more efficiently than any other nation.
    Absolute advantage
  3. The ability to produce a specific product more efficiently than any other product.
    Comparatice advantage
  4. Selling and shipping raw materials or products to other nations
  5. Purchasing raw materials or products in other nations and bringing them into one's own country.
  6. The total value of a nation's exports minus the total balue of its imports over some period of time.
    Balance of trade
  7. A negative balance of trade.
    Trade deficit
  8. The total flow of money into a country minus the total flow of money out of that country over some period of time.
    Balance of payments
  9. A tax lecied on a particular foreign product entering a country.
    Import duty (tariff)
  10. Exportation of large quantities of a product at a price lower than that of the same product in the home market.
  11. A nontax measure imposed by a government to favor domestic over foreign suppliers.
    Nontariff barrier
  12. A limit on the amount of a particular good that may be imported into a country during a given period of time.
    Import quota
  13. A complete halt to trading with a particular naion or in a paricular product.
  14. A restricition on he amount of a particular foreign currency that an be purchased or sold.
    Foreign-exchange control
  15. The reduction of the value of a nation's currency relaive to the currencies of other countries.
    Currency devaluation
  16. An international organization of 153 nations dedicated to reducing or eliminating tariffs and other barriers to the world trade.
    General Agreement on Tariffs and Trade (GATT)
  17. Powerful successor to GATT the incorporates trade in goods, services, and ideas.
    World Trade Organization (WTO)
  18. An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies.
    Economic community
  19. A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation.
  20. Issued by a bank on request of an imporer stating that the bank will pay an amount of money to a stated beneficiary.
    Letter of credit
  21. Document issued by a transport carrier to an exporter to prove that merchandise has been shipped.
    Bill of lading
  22. Issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank.
  23. A partnership formed to create competitive advantage on a worldwide basis.
    Strategic alliance
  24. Provides a link between buyers and sellers in different countries.
    Trading company
  25. An international barter transaction.
  26. A firm that operates on a worldwide scale without ties to any specific nation or region.
    Multinational enterprise
  27. An independent agency of the U.S. government whose function is to assist in financing the exports of American firms.
    Export-Import Bank of the United States
  28. An internationally supported bank that provides loans to developing countries to help them grow.
    Multilateral Development Bank (MDB)
  29. An international bank with 186 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits.
    International Monetary Fund (IMF)
Card Set:
Business Chapter 3
2013-03-02 23:54:12

spring 2013
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