Chapter 3

1. Taxes levied against imports.
4. National policies designed to restrict international trade, usually with the goal of protecting domestic businesses.
6. Selling products in foreign nations that have been produced or grown domestically.
7. Authority granted by a domestic firm to a foreign firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area. Example: Disney
9. The treaty among the United States, Mexico, and Canada that eliminated trade barriers and investment restrictions over a fifteen-year period starting in 1994.
11. A specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements. Example: McDonalds
13. The benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources.

1. Shortfall that occurs when the total value of a nation’s imports is higher than the total value of its exports.
2. Contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production.
3. The opportunity of giving up the second-best choice when making a decision.
5. The benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
8. Buying products domestically that have been produced or grown in foreign nations.
10. The complete ban on international trade of a certain item, or a complete halt of trade with a particular nation.
12. The unrestricted movement of goods and services across international borders.