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balance of trade

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26 Terms

1

balance of trade

The relationship between a country's imports and exports.

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2

comparative advantage

One nation's ability to produce goods/services better than others due to specific circumstances.

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3

dumping

Selling goods at lower prices in foreign markets than in the home market.

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4

economic climate

Overall health of a country's economy, including factors like unemployment and inflation.

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5

franchising

Business model granting rights to use trademarks and business model for a fee.

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6

free trade

Government policy allowing goods to flow freely in and out of the economy.

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7

full package production

Supplying design, fabrics, construction, and transportation arrangements.

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8

globalization

International growth in commerce and communications reducing national boundaries' importance.

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9

import comission house

Intermediary facilitating importation of goods between foreign suppliers and domestic buyers.

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10

import merchants

Businesses purchasing goods from foreign suppliers for resale in domestic markets.

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11

import penetration

Percentage of imports in a country's total market consumption.

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12

infrastructure

Basic physical and organizational structures needed for society's operation.

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13

international retailing

Operations serving customers in multiple countries.

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14

joint ventures

Agreements combining skills or products of two companies.

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15

market disruption

Significant changes in a market caused by new technologies or regulations.

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16

mutinational corporations

Corporations operating globally, transferring technology and knowledge.

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17

parity

Equal treatment achieved through new trade pacts.

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18

protectionism

Government-imposed trade restraints, opposite of free trade.

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19

structural adjustment

Industries and economies adapting to long-term competitiveness shifts.

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20

the international trade commission

Investigates imported goods infringing on US intellectual property rights.

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21

the north american free trade agreement

Established an open trading zone for the US, Canada, and Mexico.

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22

trade deficit

Occurs when imports exceed exports.

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23

trade surplus

Occurs when exports exceed imports.

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24

transhipping

Rerouting goods to evade quota limits.

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25

value added

Increase in product worth due to specific work activities.

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26

world trade organization

International trade agreement reducing tariffs and trade barriers.

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