| A | B |
|---|
| 1/3 | amount of profits in US from international trade and |
| balance of trade | difference between exports and imports |
| quota | limit on dollar amount and number of imports |
| GATT | trade agreement between some 143 nations |
| trade surplus | exports are greater than imports |
| WTO, EU, NAFTA | trade alliances that establish guidelines for international trade |
| embargo | ban on all trade |
| benefits of contract manufacturing | inexpensive labor, less expensive merchandise, use of overseas facilities |
| Economic factors | technology, language and symbols, foreign exchange rate |
| global marketing strategies | customization, globalization, product adaptation, promotion adaptation |
| absolute advantage | when a country can produce a product at the lowest possible cost |
| trade deficit | when imports are more than exports |
| infrastructure | roads sewage telephone systems |
| joint venture | a way to invest in a country when complete ownership isn't allowed |
| 3 main trade barriers | quotas, tariffs, embargoes |
| protectionism | opposite of free trade |
| exporting | a way to enter international trade with the least risks and controls |
| exchange rate | one country's money compared to another |
| globaization | selling the same product the same way in all countries |
| exports | goods and service ssold to other countries |
| licensing | use of trademark, copyright or patne for a fee |
| NAFTA | agreement between Canada, US, and Mexico |
| FDI | establishment of a business in a foreign country |
| imports | purchasing goods from other countries |
| purpose of protectionism | to limit imports in order to protect domestic industries |
