ADM 1300 Chapter 5: The global context of business

process by which the world economy is becoming a single interdependent system

goods produced abroad and sold domestically

goods produced domestically and sold abroad

annual per capita income greater than $12,536

annual per capita income of $12,536 or less but more than $4,046

annual per capita income of $4,046 or less but more than $1,036

annual per capita income less than $1,036

North America, Europe, Pacific Asia

Brazil, Russia, India, China, South Africa

the ability to produce a good using fewer inputs than another producer

the ability to produce a good at a lower opportunity cost than another producer

international competitive advantage stemming from a combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures, and rivalries

difference in value between its total exports and its total imports

a country exports more than it imports creating a favourable balance of trade

a country's imports exceed its exports creating a negative balance of trade

the difference between the flow of money into and out of a country

the rate at which one currency is converted into another

a firm must decide whether and how to adapt its products to meet the special demands of foreign customers

businesses who sell goods to a country that was made in a different country

businesses who bring goods in from another country

firm that conducts a significant portion of its business in foreign countries

firm that designs, produces, and markets products in many nations

Salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer; also known as manufacturer's representatives or reps.

arrangement in which firms choose foreign individuals or organizations to manufacture or market their products in another country

foreign office set up by an international or multinational firm

company finds a partner in a foreign country where it would like to conduct business

Investment made by a foreign company in the economy of another country.

A limit placed on the quantities of a product that can be imported

an official ban on trade or other commercial activity with a particular country.

A tax on imported goods

A government payment that supports a business to help it compete with foreign firms

practice of protecting domestic business at the expense of free-market competition

laws requiring that products sold in a particular country be at least partly made in that country

law or regulation governing business practices in given countries

a formal organization of producers that agree to coordinate prices and production

Selling goods in another country below market prices

a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions

a permanent global institution to promote international trade and to settle international trade disputes