Chapter 3 - Key terms

4. When the value of a country’s exports is more than that of its imports.
5. The value of one nation’s currency relative to the currencies of other countries.
6. Complex form of bartering in which several countries each trade goods or services for other goods or services.
8. A long-term partnership between two or more companies established to help each company build competitive market advantages.
14. A country should sell the products it produces most efficiently and buy from other countries the products it cannot produce as efficiently.
16. Quota Limits the number of products in certain categories a nation can import.
17. Lowers the value of a nation’s currency relative to others.
18. The difference between money coming into a country (from exports) and money leaving the country (from imports) plus other money flows.
20. When a firm (licensor) provides the right to manufacture its product or use its trademark to a foreign company (licensee) for a fee (royalty).

1. Taxes on imports.
2. The total value of a nation’s exports compared to its imports measured over time.
3. Selling products in a foreign country at lower prices than those charged in the producing country.
7. A country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.
9. Buying products from another country.
10. The movement of goods and services among nations without political or economic barriers.
11. A company owned in a foreign country by another company called the parent company. The most common form of FDI.
12. Selling products to another country.
13. A partnership in which two or more companies join to undertake a major project.
15. When the value of a country’s exports is less than that of its imports.
19. A contractual agreement whereby someone with a good idea for a business sells others the rights to use the name and sell a product/service in a given area.