| A | B |
|---|
| Multinational company | organization that does business in several countries |
| agriculture | a country that devotes most of its economy to THIS is often unable to provide a large variety of goods and services to its people |
| free-trade zone | a selected area in which products are imported tax free and stored assembed or used in manufacturing |
| Licensing | selling the right to use a trademark or brand name for a fee |
| WTO | Goals of this organization are to lowering tariffs, helping poor countries with economic growth, enforcing free-trade agreements between members |
| Coffee | country that has an absolute advantage in coffee production |
| cultural/social | things like language, customs, religion, and values are examples of these factors |
| joint venture | an agreement between 2 or more companies to share a business project |
| imports | items bought from other countries |
| tariff | tax on certain imports |
| absolute advantage | countries may have nay number of these in which they can produce something cheaper than another country |
| trade deficit | when a country imports more than it exports |
| Balance of Trade | Difference between a country's imports and exports |
| balance of payments | a country that has a favorable one of these often has a constant or rising currency value as well |
| Economic Development | key factors that affect THIS are literacy level, technology, and agricultural dependecy |
| money | Some countries limit the amount of THIS that their citizens can take out of the country when they travel |
| US jobs | 1 out of 6 of THESE depend on international trade |
| Balance of Payments | difference between the amount of money that comes into a country and the amount that goes out |
| Exchange rate | teh formula to determine this is teh currency you want diveided by the currency you currently haveis |
| currency | increased demand for the nation’s products and currency iwll likely cause the value of THIS to go up as well |
| common market | members of THIS have a common external duty on products being imported from nonmember countries |
| host country | country in which a multinational company conducts business activities |
| financial investment | Franchises often have a low THIS, so the potential financial return is often low |
| foreign trade | aka international business |
| unfavorable | a negative balance of payments aka _______________ balance of payments occurs when a country sends out more money than it brings in |
| culture | The accepted behaviors, customs, and values of a society |
| trade barrier | a restriction to free trade |
| embargo | a government completely stops the import or export of a product |
| franchise | right to use a company name or business process in a specific way |
| foreign debt | amount a country owes to other countries |
