Chapter 9, Section 2 KEY TERMS

4. ________country foreign location where it has facilities.
5. firm setting up a business abroad on its own without any partners.
7. licensing allowing a company in another country to make and sell products according to certain specifications.
11. firm that owns or controls production or services facilities in more than one country.
13. bloc group of two or more countries that agree to remove all restrictions between them on the sales of goods and services, while imposing barriers on trade with and investment from countries that are not part of the bloc.
14. selling products or services to buyers in another country.
15. ________country in which the business has its headquarters.
18. buying goods or services made in a foreign country
20. ________alliances firms cooperate on certain aspects of business while remaining competitors on other aspects.
21. ________barriers are nontax methods of discouraging trade.

1. culture in which communication occurs through nonverbal signs and indirect suggestions.
2. limits the quantity or value of units permitted to enter a country.
3. process in which the government bars companies from doing business with particular countries.
6. rate the value of one country’s currency expressed in the currency of another country.
8. customs, beliefs, values, and patterns of behavior of the people of a country or group.
9. culture in which people communicate directly and explicitly.
10. foreign branches of a firm, if registered as independent legal entities.
12. practice of selling goods in a foreign market at a price that is below cost or below what it charges in its home country.
13. ________are taxes on foreign goods to protect domestic industries and to earn revenue.
16. milder form of an embargo that bans specific business ties with a foreign country.
17. venture two or more firms sharing both the costs of doing business and the profits.
19. firm company headquarters.