| A | B |
|---|
| Multinational Corporation | A company that does business in many countries and has facilities and offices in many countries around the world. |
| Imports | Goods and services that a country buys from another country. |
| Exports | Goods and services that one country sells to another. |
| Exchange Rate | The price at which one currency can buy another currency. |
| Balance of Trade | The difference in the value between how much a country imports and how much it exports. |
| Protectionism | The practice of putting limits on foreign trade to protect businesses at home. |
| Tariff | A tax placed on imports to increase their price in the domestic market. |
| Quota | A limit placed on the quantities of a product that can be imported. |
| Embargo | The government decides to stop and import or export of a product. |
| Free Trade | Few or no limits on trade with other countrie. |
| Trade dispute | conflict over global competition |
| NAFTA | trade alliance between the US, Canada and Mexico |
| Foreign Exchange market | banks where different currencies are exchanged |
| Currency | the US dollar, peso, yen and pound |
| domestic trade | goods and services that are bought and sold within the country |
| trade surplus | when a country exports more than it imports |
| trade deficit | when a country imports more than it exports |
| trade alliance | when several countries merge economies inot one huge market and to reduce or eliminate limits on trade |
| international business | business activities needed for creating, shipping and selling goods and services actoss 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 |
| balance of payments | the difference between the amount of money that comes into and the amoun to goods that go out |
| infrasturcture | refers to a nation's transportation, communication and utility system |
| trade barrier | restrictions to free trade with other countries |
| free-trade agreements | member countries afree to remove duties also called import taxes and trade barriers on products trades among them |
| licensing | allows companies to produce items in other countries without being actively involved |
| franchising | allows organizations to enter into contracts with peopel in other countries to set up a business that looks and rund like the parent company |
| joint venture | allows 2 or more companies to share raw materials, shippping facilitie, management activites or production activities |
| world trade organization | 150 countries, promotes trade, settles trade disputes and enforces trade agreements |
