| A | B |
|---|
| occurs when firms of one country build new plants in another country | Foreign investment |
| Goods and services that are sold to other countries | exports |
| are used to raise the price of foreign products | tarriffs |
| affects how people communicate in a country | culture and beliefs |
| three nations affiliated with NAFTA | United States, Canada, and Mexico |
| sales decline rapidly during this stage of a product's life cycle | maturity |
| balance of payments surplus occurs when more money comes then what is spent | exports>imports |
| of international business whereby firms agree to cooperate on certain aspects of business while remaining competitors on other aspects | strategic alliance |
| branches of an international firm | subsidiaries |
| international organization that creates and enforces rules concerning trade among countries | World Trade Organization |
| this practice is designed to set selling prices that will drive domestic producers out of the market | dumping |
| barriers that deal with non-government imposed obstacles of selling goods in a foreign country | nontariff barrier |
| the foreign location where a company has facilities though it is not headquartered in that country | host country |
| a low-context culture uses this type of communication | direct |
| a high-context culture relies on this to communicate | indirect cues, nonverbal communication |
| company overproduces, the best way to dispose of its surplus goods profitably | sell the surplus goods abroad |
| a country specializes in providing products or services more efficiently than can other countries | comparative advantage |
| Introduction, growth, maturity, and decline | stages of a product's life cycle |
| Limits placed on the quantity of items permitted to enter a country | quota |
| Occurs when a government bars companies from doing business with particular countries | embargo |
| Single new currency adopted by many EU members | euro |
| Goods and services purchased from other countries | imports |
| Value of one country’s currency expressed in the currency of another country | exchange rate |
| Foreign location where a company has facilities | host country |
| on foreign goods that protect domestic industries and earn revenue | tariffs |
| Arrangement in which two or more firms share profits and the costs of doing business | joint venture |
| Country in which a company has its headquarters | home country |
| branches of a company that are registered as independent legal entities | subsidiaries |
