| A | B |
|---|
| 1/3 | amount of profits in US from international trade and foreign investments |
| balance of trade | difference between exports and imports |
| trade barriers | the 3 main types are tariffs, quotas, and embargoes |
| trade alliances | The WTO, EU, NAFTA are THESE and they establish guidelines for international trade |
| embargo | total ban on ALL trade for political or safety reasons |
| contract manufacturing | the main benefit of this is lower wages |
| Foreign Exchange | This RATE is an economic factor that is relevant to starting a business in another country |
| trade surplus | when a nation exports more than it imports |
| NAFTA | agreement between Canada, US, and Mexico |
| imports | purchasing goods from a foreign country |
| protectionism | restricting imports in order to protect domestic industries |
| Deregulation | Even though there has been THIS with the phone industry most utilities are still REGULATED monopolies where the US gov't controls price |
| Competition | struggle between companies for customers |
| price competition | Examples of THIS strategy include sales and Rebates or consumers buying at the LOWEST prices |
| Licensing | Allows businesses to use others trademarks, patenst, special formulas, or comapny name for a fee |
| Non-profit | Red Cross, Churches, DECA, and the Girl Scouts are all this type of organization |
| Monopolies | If these are allowed in an economy, then a company can charge any price it wants and have poor quality |
| Risk | THIS increases as the potential for earning increases |
| business | purpose of most of these is to produce products |
| International Trade | the exchange of g/s among nations |
| WTO | coalition of nations that make rules governing international trade |
| Foreign Direct Investment(FDI) | establishment of a business in a foreign country |
| Global marketing strategies | THESE include globalization, adaptation, and customization |
| licensing agreement | the purpose of THIS is to protect the originator from unauthorized copying |
| Quota | limits either the quantity or the dollar value of imports |
| Trade deficit | If a country IMPORTs more than it EXPORTS with another country it will have this |
| Joint Venture | Using a local partner in another country to set up business with |
| finance | the money-management function |
| Non-price | businesses stress quality, services, and financing for instance in this type of competition |
| Shortages | prices increase when supply is less than demand called THIS |
| Procurement | buying and reselling ready made goods |
