Across
- 3. Designates the maximum quantity of a product that may be brought into a country during a specified time period.
- 7. globalization of production.
- 9. Monetary Fund (IMF) Established with the original General Agreement on Tariffs and Trade (GATT); primary purpose is to promote international monetary cooperation and facilitate the expansion and growth of international trade.
- 10. investment When a firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.
- 11. Trade Organization (WTO) Replaced the GATT in 1994; differs from the GATT in that the WTO is an established institution based in Geneva, Switzerland, instead of simply an agreement; represents the only international organization that deals with the global rules of trade among nations.
- 12. The basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons.
- 17. venture Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.
- 18. A group's refusal to deal commercially with some organization to protest against its policies.
- 19. bloc Consists of those countries that have signed a particular trade agreement.
- 21. national income (GNI) Consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy).
- 22. rate The measure of how much one currency is worth in relation to another.
Down
- 1. Other word for tariff.
- 2. power parity (PPP) A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency.
- 4. The practice of selling a good in a foreign market at a price that is lower than its domestic price or below its cost.
- 5. of production Also known as offshoring; refers to manufacturers' procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors of production (e.g., labor, energy, land, capital).
- 6. A tax levied on a good imported into a country; also called a duty.
- 8. Agreement on Tariffs and Trade (GATT) Organization established to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders.
- 13. A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
- 14. alliance A collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another.
- 15. Producing goods in one country and selling them in another.
- 16. development index (HDI) A composite measure of three indicators of the quality of life in different countries: life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet the basic needs of life in that country.
- 20. surplus Occurs when a country has a higher level of exports than imports.