Chapter 3

Country's ability to produce a good or service at a lower cost per unit than any other country can produce it

Government order to restrict or prohibit commerce with a specific country

Tax on imported goods used by governments to protect a domestic industry against foreign competition

Deliberate downward adjustment to a country's exchange rate relative to other currencies

a form of international bartering in which several countries each trade goods or services for other goods or services

international commerce not restrained by government interference or regulation

price for which the currency of one country can be exchanged for the currency of another country

taxes to raise money for the government

import taxes to raise the retail price of imported products so that domestic goods are more competitively priced

selling products in a foreign country at lower prices than those charged in the producing country

a nation's ratio of exports to imports

a positive balance of trade; a country's exports exceed its imports

a negative balance of trade; a country's imports exceed it exports

Business arrangement in which one company gives another, permission to manufacture its good in exchange for a fee (royalty)

Contractual agreement of 2 or more companies for the purpose of executing a specific business undertaking

Group formed by countries within a geographical region to promote free trade among its members

a partially or wholly owned company that is part of a larger company with facilities in another country

a long term relationship between 2 or more companies established to help each company build a competitive market advantage but do not share anything (risks, profits etc.)

corporation that manufactures and markets products in many different countries and has multinational stock ownership and management

production of goods by one firm under the label or brand of another firm

trilateral treaty among Canada, Mexico, and the U.S. that encourages free trade among these countries

general agreement on Tariffs and Trade; international treaty to facilitate international trade

Worl Trade Organizations; international organization dealing with the rules of trade between nations

bringing goods or services into one country from another

the selling o goods and services produced in one country to another country

a contractual agreement whereby someone with a good idea for a business sells others the right to use the business name and sell a product or service in a given territory in a specific manner

a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark

theory suggested by David Ricardo in the 19th century that states a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently

In measuring global trade, nations rely on what 2 key indicators?

What Act prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts?