| A | B |
|---|
| tariff | a tax that a government places on certain imported products. |
| WTO | World trade organization created in 1955 |
| exports | goods and services sold to other countries. |
| imports | goods and services bought from other countries |
| 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. |
| multinational company | 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. |
| embargo | an action imposed by the government to stop the export or import of a product completely. |
| quota | a government-set limit on the quantity of a product that may be imported or exported within a given period. |
| infrastructure | a factor that supports international trade in industrialized countries, including a nation’s transportation, communication, and utility systems. |
| exchange rate | the value of a currency in one country compared with the value in another. |
| 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. |
| domestic business | the making, buying, and selling of goods and services within a country |
| international business | business activities needed for creating, shipping and selling goods and services across national borders |
| absolute advantage | exists when a country can produce a good or service at a lower cost than other countries |
| comparative advantage | a situation in which a country specializes in the production of a good or service at which it is relatively more efficient |
| free-trade zone | a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing |
| global strategy | uses the same product and marketing strategy worldwide |
| multinational strategy | treats each country market differently adapting customs, tastes and buying habits |
| licensing | selling the right to use some intangible property for a fee or royalty |
| franchise | the right to use a company name or a business process in a specific way |
| trade barriers | restrictions to free trade. |
