| A | B |
|---|
| Domestic Business | is the making, buying, and selling of goods and service within a country. |
| International business | also called foreign or world trade, refers to business activities needed for creating, shipping, and selling goods and services across national borders. |
| Absolute Advantage | exists when a country can produce a good or service at a lower cost than other countries |
| Comparative Advantage | is a situation in which a country specializes in the production of a good or service at which it is relatively more efficient |
| Imports | items bought from other countries |
| Exports | goods and services sold to other countries |
| Foreign Debt | is the amount of money a country owes to other countries. |
| Balance of Trade | the difference between a country’s total exports and total imports. |
| Balance of Payments | the difference between the amount of money that comes into a country and the amount that goes out of it. |
| Foreign Exchange Market | where banks buy and sell different currencies |
| Exchange Rate | the value of a currency in one country when compared with the value in another |
| Embargo | Government bans the import or export of specified goods. |
| Quotas | A limit on the quantity of good that may be imported or exported within a given period to regulate international trade. |
| Tariffs | Taxes on certain imported products which increases prices. |
| Common Market | Countries that are members freely invest in one another. |
| Free-Trade Agreement | Countries that are members remove duties and trade barriers on products traded among them to increase trade between members. |
| Free-trade zones | Include selected areas that allow duty-free products to be imported, and then stored, assembled, and/or used in manufacturing. The activities usually occur around a seaport or airport |
| Franchising | allowing a business the rights to use another company’s name or process in a specific way. |
| Licensing | selling the right to a company to use some intangible property (production process, trademark, or brand name) for a fee or royalty. |
| Joint venture | happens when two or more companies agree to share a business project. |
| International Monetary Fund (IMF) | Helps promote economic cooperation and maintain an orderly system of world trade and exchange rates. |
| World Bank | Provides economic aid to developing countries to fund building communications systems, transportation networks, and energy plans. |
| World Trade Organization (WTO) | Settles trade disputes and enforces free-trade agreements among its members. |
