| A | B |
|---|
| deficit | A country with a prolonged trade may find it difficult to pay its bills. |
| embargo | American companies cannot conduct business in North Korea because of THIS |
| host | A subsidiary is considered the _________ country |
| trade | The WTO creates and enforces rules governing THIS |
| drop | When dumping occurs, the price of the goods in a foreign market ______ |
| Decline | During the _____________ of a product, sales decreaserapidly. |
| abroad | If a U.S. company overproduces, the best way to dispose of its surplus goods profitably is to a. sell the surplus goods |
| domestic | Nontariff barriers are designed to protect ________________producers. |
| foreign investment | when firms of one country build new plants in another country. |
| increase | Effect tariffs have on the prices of foreign products |
| subsidiaries | The branches of an international firm are called |
| nontariff barrier | Before an American company can sell its left-side steering wheel motor vehicles to Ireland, it must change the steering wheel to the right side. This restriction is called THIS |
| tariffs | Taxes on foreign goods that protect domestic industries and earn revenue. |
| subsidiaries | Foreign branches of a company that are registered as independent legal entities. |
| joint venture | Arrangement in which two or more firms share profits and the costs of doing business. |
| Euro | Single new currency adopted by many EU members. |
| host country | Foreign location where a company has facilities. |
| imports | Goods and services purchased from other countries. |
| home country | Country in which a company has its headquarters. |
| quota | Limits placed on the quantity of items permitted to enter a country. |
| culture | __________ or the customs, beliefs, values, etc affects how people communicate in a country. |
| strategic alliance | A form of international business whereby firms agree to cooperate on certain aspects of business while remaining competitors on other aspects |
| international licensing | When an American company allows a Japanese company to produce and sell in Japan a product the American company invented |
| strengthened | A country is in a _____________ position when it continues to sell more in foreign nations than it buys from them. |
| services | Trade patterns have shifted from goods to THIS |
| current; capital | two parts of the balance of payments statement are the ___________ account and the _____________ account |
| raise | Tariffs have a tendency to ______________ the price of foreign products. |
| comparative advantage | When a country specializes in providing products or services more efficiently than can other countries it is practicing this theory |
| exchange rate | Value of one country’s currency expressed in the currency of another country. |
| embargo | Occurs when a government bars companies from doing business with particular countries. |
