| A | B |
|---|
| Domestic business | The making, buying, and selling of goods and services within a country |
| Foreign Business | activities needed for creating, shipping, and selling goods and services across international borders |
| Imports | Items brought into the country from other countries |
| Exports | Goods and services that are sold to other countries. |
| Absolute advantage | When a country can produce a good or service at a lower cost than other countries |
| Comparative advantage | When a country specializes in the production of goods or services that they are more efficient at making |
| Foreign debt | The amount of money that a country owes other countries |
| Balance of trade | The difference between a country’s total exports and total imports |
| Trade deficit | This occurs when imports are greater than exports |
| Trade surplus | This occurs when exports are greater than imports |
| Balance of payments | The difference between the amount of money that comes into the country and the amount that goes out of it |
| Foreign exchange | The market Banks buy and sell different currencies in |
| Exchange rate | The value of a currency in one country compared with the value in another |
| Geographic factor | Location, terrain, natural resources and climate are all part of which factor affecting the international business environment? |
| Culture | The accepted behaviors, customs, and values of a society |
| Cultural Factors | as religion, language, values, and customs are part of which category of factors affecting the international business environment? |
| Economic | The literacy level, technology available, and level of agricultural dependency of a country are part of which category of factors affecting the international business environment? |
| Trade barrier | A restriction to free trade |
| Infrastructure | A nation’s transportation, communication, and utility systems |
| Quota | A limit on the quantity of a product that may be imported or exported in a given time period |
| Tariff | A tax that the government places on certain imported goods and services |
| Common Market | A group of countries that decides to do away with the duties and other trade barriers |
| Free trade | An agreement in which the member countries agree to remove the duties and trade barriers on products traded among them |
| Free trade zone | An area where products can be imported duty free and then stored, assembled, and/or used in the manufacturing |
| Multinational | company does business in several countries |
| Global | business strategy sells the same product using the same marketing strategy worldwide |
| Franchising Selling | the right to use a company name or business process in a specific way |
| Licensing Selling | the right to use some intangible property for a fee or royalty |
| Joint venture | An agreement between 2 or more countries to share a business project |
