Chapter 3 Business in the Global Economy
joint venture
an agreement between two or more companies from different countries to share a business project
multinational company
an organization that conducts business in several countries
World Trade Organization
created to promote trade around the world; settles trade disputes and enforces free-trade agreements
World Bank
key function is to give economic aid to less developed countries; builds communications systems, transportation networkds and energy plants; makes loans to developing countries
embargo
stopping the importing or exporting of a certain product or service
balance of trade
the difference between a country's total exports and total imports of goods
balance of payments
the difference between a country's total payments to other countries and its total receipts from other countries
exchange rate
the value of money of one country expressed in terms of the money of another country
quota
a limit on the quantity of a product that may be imported and exported within a given period
infrastructure
a nation's transportation, communication and utility systems
tariff
a tax that a government places on certain imported products
imports
goods and services bought from another country
exports
goods and services sold to another country
trade barrier
government restrictions to reduce free trade
International Monetary Fund
helps to promote economic cooperation; maintains an orderly system of world trade and exchange rates; cooperation makes trade wars less likely
