intro to bus chap 3

joint venture

an agreement between two or more companies to share a business project

Give an example of a country and their absolute advantage

australia, wool

multinational corporation

companies operate on a worldwide scale without ties to any single country

offshore outsourcing is another term used to describe the act of US firms selling their domestically manufactured goods to foreign customers true/ false

false

offshore outsourcing

hiring people in another country to perform various tasks

how does comparative advantage generate more goods and services for both countries

specialization leads to more output

identify 3 ways to restrict trade

tariffs, tax import quotas, limits number of product embargo, ban on import/ export/ country

importing

the US buys automobiles from Japan and Germany petroleum products, the us engages in...

what does BRIC stand for

Brazil, russia, india, china

european union

several countries band together to reduce trade barriers between them and encourage trading among themselves

FDI

Investment made by a foreign company in the economy of another country.

NAFTA

USA, canada, mexico

liscensing

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

strategic alliance

newest form of international business structure developed to create competitive advantage on worldwide basis

2 pros of free trade 2 cons

over 7 billion customers, inspires innovation/ low interest rate more competition, job loss/ low wages

how does balance of trade differ from balance of payments?

payments are money following in/ out of a country (foreign aid/ military training)

2 advantages and disadvantages of protectionism

protect nation security, protect domestic jobs higher prices for consumers, loss of jobs

why is it important to understand the global market

there's too many people to ignore, global perspective

what is a national balance of trade? what does someone mean when they say that the balance of trade is favorable?

total value of exports minus imports export > import, import > export

what is the trend of international business

trade barriers, decrease a lot of expansion from internet

india and russia are emerging markets that present enormous business operations true/ false

true

one advantage of offshore outsourcing is that consumers benefit from lower prices true/ false

true

over 90% of companies doing business globally believe it is important for their employees to have experience working in other countries true/ false

true

exporting

uk sells industrial supplies and materials to may nations

why do nations trade

we need each others goods/ resources, "1 nation doesn't have it all"