Intro to business chapter 3
Draft
Issued by the exporters bank, ordering the importers bank to pay for the merchandise, that's guaranteeing payment once excepted by the importers bank
NAFTA
North America free trade agreementq
World trade organization (WTO)
Powerful successor to GATT that incorporates trade in goods, services, and ideas
Trading company
Provide a link between buyers and sellers in different countries; think of as middleman
Importing
Purchasing raw materials or products in other nations and bringing them into one's own country
Exporting
Selling and shipping raw materials or products to other nations
Reasons for trade restrictions
To equalize the nations balance of payments; to protect new or weak industries; to protect national security; to protect the health of citizens; to retaliate for another nations trade restrictions; to protect domestic jobs
Embargo
A complete halt to the trading with a particular nation or in a particular product
Multinational enterprise
A firm that operates on a worldwide scale without ties to any specific nation or region
Import quota
A limit on the amount of a particular good that may be imported into a country during a given period of time
Trade deficit
A negative balance of trade
Non-tariff barrier
A non-tax measure imposed by a government to favor domestic over foreign suppliers
Strategic alliance
A partnership form to create a competitive advantage on a worldwide basis
Joint venture
A partnership formed to achieve a specific goal or to operate for a specific period of time
Import duty, Tariff
A tax levied on a particular foreign product entering a country
Export import Bank of the United States
An independent agency of the United States government whose function is to assist in financing the exports of American firms
General agreement on tariffs and trade(GATT)
An international organization of 159 nations dedicated to reducing or eliminating tariffs and other barriers to world trade
Economic community
An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies
International monetary fund (IMF)
And international bank with 188 member nations that makes short term loans to developing countries experiencing balance of payment deficits
International monetary fund (IMF)
And international bank with 188 member nations, expected a gradual global growth to continue into thousand 13 and 2014 in both advanced and emerging developing economics
Counter trade
And international border transaction
Multilateral development bank (MDB)
And internationally supported bank that provides loans to developing countries to help them grow
Letter of credit
Issued by the bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary
Bill of lading
Document issued by a transport carrier to an exporter to prove that merchandise has been shipped
Dumping
Exportation of large quantities of a product at a price lower than that of the same product in the home market
Reasons against trade restrictions
Higher prices for consumers; restriction of consumers choice; misallocation of international resources; loss of jobs
National export initiative (NEI)
In August 2010 president Obama announced ________ to revitalize US exports under this many federal agencies assist US firms in developing export promotion programs
Foreign exchange control
In restriction on the amount of a particular foreign currency that can be purchased or sold
Gross domestic product (GDP)
In the United States international trade now accounts for over one fourth of.....
Comparative advantage
The ability to produce a specific product Maurices Shipley than any other product
Absolute advantage
The ability to produce a specific product more efficiently than any other nation
Licensing
The contractual agreement in which one firm permits another to produce and market it's product and use its brand-name in return for a royalty or other compensation
Currency devaluation
The reduction of the value of the nations currency relative to the currencies of other countries
Balance of payments
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 trade
The total value of a nation's exports minus the total value of its imports over some period of time