| A | B |
|---|
| international business | business activities that occur between two or more countries. |
| pacific rim | countries located on the western edge of the Pacific Ocean. |
| multinational firm | a business that owns or controls production or service facilities outside the country in which it is based. |
| home country | the country in which a multinational corporation has its headquarters. |
| parent firm | a company that controls another company. |
| host country | the foreign country where a multinational firm has production and service facilities. |
| subsidiaries | foreign operations that are branches or are separately registered as a legal entity. |
| comparative advantage theory | to gain a trade advantage, a country should specialize in products or services that is can provide more effciently than other countries. |
| balance of trade | the difference between money coming into and going out of a country. |
| imports | represent goods and services purchased from other countries. |
| exports | represent goods and services sold to other countries. |
| balance of trade surplus | when more money comes into a country than goes out. |
| free trade | the elimination of most trade barriers. |
| tariff | a tax on foreign goods. |
| dumping | refers to the practice of selling goods in a foreign market at a price that is below cost or below what it charges in its own home country. |
| balance of trade deficit | when more money leaves a country than comes in. |
| quotas | limits placed on the quantity or value of units permitted to enter a country. |
| non-tariff-barriers | barriers other than tariffs that restrict imports. |
| exchange rate | the value of one currency to another. |
| trading bloc | an arragement between two or more countries to remove all restrictions on the sale of goods and services among them while imposing barriers to trade and investment from countries that are not part of the bloc. |
| culture | the customs, beliefs, values, and patterns of behavior of the people of a country or group. |
| exporting | when a company sells its goods and services to a foreign country. |
| importing | buying goods or services made in a foreign country. |
| embargo | government bars on companies doing business with particular countries. |
| sanctions | a milder form of embargo where specific business ties with a foreign country are banned. |
