| A | B |
|---|
| Absolute advantage | a situation where a country can produce a good or service at a lower cost than other countries. |
| Balance of payments | the difference between the amount of money that comes into a country and the amount that goes out of a country. |
| Balance of trade | the difference between a country's total exports and total imports. |
| Common market | a market in which members do away with duties and other trade barriers. |
| Comparative advantage | a situation in which a country specializes in the production of a good or service at which it is relatively more efficient. |
| Culture | the accepted behaviors, customs, and values of a society. |
| Domestic business | the making, buying, and selling of goods and services within a country. |
| Embargo | an action imposed by the government to stop the export or import of a product completely. |
| Exchange rate | the value of a currency in one country compared with the value in another. |
| Exports | goods and services sold to other countries. |
| Foreign debt | the amount a country owes to other countries. |
| Foreign exchange market | banks that buy and sell different currencies. |
| Franchise | a written contract granting permission to operate a business to sell products and services in a set way. |
| Free-trade agreement | an agreement between member countries to remove duties and trade barriers on products traded among them. |
| Free-trade zone | a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing. |
| Global strategy | a strategy that uses the same product and marketing strategy worldwide. |
| Host country | the country in which the multinational company (MNC) places business activities. |
| Imports | goods and services bought from other countries. |
| Infrastructure | a factor that supports international trade in industrialized countries, including a nation's transportation, communication, and utility systems. |
| Interest rates | the cost of using someone else's money. |
| International business | business activities needed for creating, shipping, and selling goods and services across national borders. |
| Joint venture | a unique business organized by two or more other businesses to operate for a limited time and for a specific project. It is a type of partnership. |
| Licensing | selling the right to use some intangible property (production process, trademark, or brand name) for a fee or royalty. |
| Multinational company (MNC) | an organization that does business in several countries. It usually consists of a home country and divisions or separate companies in one or more host countries. |
| Multinational strategy | a strategy that treats each country market differently. Firms develop products and marketing strategies that adapt to the customs, tastes, and buying habits of a distinct national market. |
| Negative or unfavorable balance of payments | the result of a country sending more money out than it brings in. |
| Positive or favorable balance of payments | occurs when a nation receives more money in a year than it pays out. |
| Quota | a government-set limit on the quantity of a product that may be imported or exported within a given period. |
| Tariff | a tax that a government places on certain imported products. |
| Trade barriers | restrictions to free trade. |
| Trade deficit | a situation in which a country imports (buys) more than it exports (sells). |
| Trade surplus | a situation in which a country exports (sells) more than it imports (buys). |
