| A | B |
|---|
| foreign investment | when firms of one country build new plants in another country |
| exports | Goods and services that are sold to other countries |
| dumping | practice of selling goods in a foreign market at a price taht is below cost or below what it charges in its home country |
| Tariffs | contribute to the price increase of foreing goods |
| domestic goods | Nontariff barriers are designed to protect |
| Culture | one factor that affects how people communicate in a country |
| When the cost of making goods is lower in foreign countries than at home | it becomes cost effective for companies to buy goods made abroad |
| Trading blocs | discourage global trade and investment |
| WTO | creates and enforces rules governing global trade |
| US, Canada, Mexico | three nations affiliated with NAFTA |
| World Bank | main purpose is to provide low-cost loans to less-developed countries to develop roads and electric power plants |
| decline | during the decline stage of a product sales can be expected to |
| ship products overseas | When home sales begin to lag American companies will often do what with their products |
| relocate in foreign countries | when home sales begin to lag business will sometimes |
| deficit occurs | When more money leaves a country than comes in |
| strategic alliance | A form of international business whereby firms agree to cooperate on certain aspects of business while remaining competitors on other aspects |
| Canada, China, and Mexico | The top three countries with which the United States trades |
| subsidiaries | The branches of an international firm |
| World Trade Organization | international organization that creates and enforces rules concerning trade among countries |
| exchange rate | value of an English pound relative to the euro is an example of |
| international licensing | When an American company allows a French company to produce and sell in France a product the American company invented |
| a nontariff barrier | producing steering wheels on the opposite side of other countries has created what trading complication for the US |
| the host country | A company is headquartered in the India with a subsidiary in Germany what would Germany be considered |
| an embargo | American companies cannot conduct business in Cuba because of |
| low-context culture | type of culture that encourages direct communication |
| high-context culture | in this culture communication is more indirect and beat around the bush |
| sell the surplus goods abroad | if a company overproduces, the best way to dispose of its surplus goods profitably is to |
| comparative advantage | When a country specializes in providing products or services more efficiently than can other countries, it is practicing the theory of |
| a product's life cycle | Introduction, growth, maturity, and decline |
| bills | Countries with prolonged trade deficits may struggle to pay what |
| capital account | Investment funds coming into and going out of a country are recorded in the |
| quota | Limits placed on the quantity of items permitted to enter a country. |
| embargo | Occurs when a government bars companies from doing business with particular countries |
| euro | Single new currency adopted by many EU members |
| imports | Goods and services purchased from other countries |
| exchange rate | Value of one country’s currency expressed in the currency of another country |
| host country | Foreign location where a company has facilities |
| tariffs | Taxes on foreign goods that protect domestic industries and earn revenue |
| joint venture | Arrangement in which two or more firms share profits and the costs of doing business |
| exports | Country in which a company has its headquarters |
| subsidiaries | Foreign branches of a company that are registered as independent legal entities |
