| A | B |
|---|
| international business | business activities that occur between two or more countries |
| pacific rim | countries like China, South Korea, Taiwan, Hong Kong, and Singapore that have emerged as large trading companies over the past 30 years |
| world trade organisation (WTO) | international organisation that creates and enforces the rules governing trade amongst countires |
| trading bloc | group of two or more countries who agree to remove all restrictions between them on the sales of goods and services, while imposing barriers on countries who aren't part of the bloc |
| European Union (EU) | best example of trading bloc, currently has 25 members |
| euro | European currency for countries in the EU, used so countries can view these countries as a single market |
| North American Free Trade Agreement (NAFTA) | world's largest trading bloc, removed tariffs and other barriers to trade among the U.S., Mexico, and Canada |
| International Monetary Fund (IMF) | purpose is to help countries that are facing serious financial difficulties in paying for imports or repaying loans |
| World Bank | provides low cost , long term loans to less developed countries to develop basic industries and facilities, such as roads and electric power plants |
| exporting | a company selling products or services to buyers in another country |
| importing | buying goods or services made in a foreign country |
| international licensing | when one company allows a company in another country to make and sell products according to general specifications |
| joint ventures | two or more firms share the costs of doing business and also share the profits |
| wholly owned subsidiary | when a firm sets up a business abroad on its own without any partners, they are more risky and more expensive |
| strategic alliances | firms agree to cooperate on certain aspects of business while remaining competitors on other aspects |
| multinational firms | firm that owns or controls production or service facilities in more than one country |
| home country | the country where the business has its headquarters |
| host country | the foreign location of facilities |
| parent firm | company headquarters |
| subsidiaries | foreign branches of a business |
| tariff | taxes on foreign goods to protect domestic industries and to earn revenue |
| dumping | practice of selling goods in a foreign market at a price that is below cost or below what it charges in its home country |
| quota | limits the quantity or value of units permitted to enter a country |
| nontariff barriers | nontax methods of discouraging trade |
| embargo | governments barring companies from doing business with certain countries because of political reasons |
| sanctions | milder form of embargo, bans specific ties with a foreign country |
| exchange rates | value of one country's currency expressed in the currency of another country |
| culture | refers to the customs, beliefs, values, and patters of behaviour of the people of a country or group |
| low-context culture | such as the US, people communicate directly and explicitly |
| high-context culture | communication tends to occur through non-verbal signs and indirect suggestions |
| comparative advantage theory | states that to gain a trade advantage, a country should specialise in products or services that it can provide more efficiently than can other countries |
| product life cycle theory | another explanation for trade and investment |
| balance of payments | an accounting statement where all international transactions are recorded |
| current account | records the value of goods and services exported and those imported from foreigners, as well as other income and payments |
| capital account | records investment funds coming into and going out of a country |
