| A | B |
|---|
| Domestic business | Making, buying, and selling of goods and service 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 that other countries |
| Comparative advantage | Situation in which a country specializes in the production of a good or service at which it is relatively more efficient |
| Imports | items bought from other countries |
| Exports | Goods and services sold to other countries |
| Foreign debt | Amount of money a country owes to other countries |
| Balance of trade | Difference between a country's total exports and total imports |
| Balance of payments | Difference between the amount of money that comes into a country and the amount that goes out of it |
| Exchange rate | Value of a currency in one country when compared with the value in another |
| Trade barriers | Restrictions to free trade |
| Embargo | When a government bans the import or export of specified goods |
| Quota | A limit on the quantity of good that may be imported or exported within a given period to regulate international trade |
| Tariffs | Taxes on certain imported products which increases prices |
| Common markets | When countires that are members freely invest in one another |
| Free-Trade Agreements | When countries taht are members remove duties and trade barriers on products traded among them to increase trade between members |
| Free-Trade Zone | Include selected areas that allow duty-free products to be imported, and then stored, assembled, and/or used in manufacturing |
| Franchising | Allowing a business the rights to use another company's name or process in a specific way |
| Licensing | Selling the right to a company to use some intangible property for a fee or royalty |
| Joint Venture | Happens when two or more companies agree to share a business project |
| International Monetary Fund | Helps promote economic cooperation and maintain an orderly system of world trade and exchange rates |
| World Bank | Provides economic aid to developing countires to fund building communication systems, transportation networks, and energy plans |
| World Trade Organization | Settles trade disputes and enforces free-trade agreements among it members |
