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