| A | B |
|---|
| International trade | exchange of goods and services among nations |
| Imports | goods and services purchased from other countries |
| Exports | goods and services sold to other countries |
| Balance of trade | the difference in value between exports and imports |
| trade deficit | when a nation imports more than it exports |
| Free trade | commercial exchange between nations that is conducted free of regulation |
| Tariff | a tax on imports |
| Quota | a limit of the quantity or monetary value of a product being imported |
| Embargo | a total ban on a specific product |
| Licensing | letting another company, or licensee, use a trademark and patent |
| Contract manufacturing | hiring a foreign manufacturer to make products according to a company's specifications |
| Joint venture | a business enterprise that a domestic company and a foreign company understake together |
| Foreign direct investment | the establishment of a busines in a foreign country |
| Globalization | complete standardization |
| Adaptation | a company's use of an existing product from which changes are made |
| customization | creating a specially designed produc for a certain region |
| Factors of production | all things used in producing goods and services in an economy |
| Scarcity | the difference between wants and needs and available resources |
| Market economy | an economy that has no government involvement |
