MGMT 1281 Lecture Notes - Lecture 5: International Trade, World Trade Organization, Foreign Direct Investment

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Tuesday, September 29, 2015
Business Management Chapter 5
-International Competitiveness: competitive marketing of domestic products against
foreign products.
-Balance of trade: the economic value of all products that a country exports minus
the economic value of all products it imports.
-Surplus: situation in which a country exports more than its imports, creating a
favourable balance of trade.
-Deficit: Situation in which a countries import exceed its exports creating a negative
balance of trade.
-Balance of Payments: Flow of all money into or out of a country
-Exchange Rate: Rate at which the currency of one nation can be exchanged for the
currency of another nation
-Euro: A common currency shared among most of the members of the European
Union.
-Exporter: Firm that distributes and sells products to one or more foreign countries.
-Importer: Firm that buys products in foreign markets and them imports them for
resale in its home country.
-International Firm: Firm that conducts a significant portion of its business in foreign
countries.
-Multinational Firm: Firm that designs, produces and markets products in many
nations.
-Independent Agent: Foreign individual or organization that agrees to represent an
exporter’s interests.
-Licensing Arrangement: Arrangement in which firms choose foreign individuals or
organizations to manufacture or market their products in another country.
-Royalties: Fees that an exporter receives for allowing a company in a foreign
country to manufacture or market the exporter’s products.
-Branch Office: A location that an exporting firm establishes in a foreign country to
sell its precepts more effectively.
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Document Summary

International competitiveness: competitive marketing of domestic products against foreign products. Balance of trade: the economic value of all products that a country exports minus the economic value of all products it imports. Surplus: situation in which a country exports more than its imports, creating a favourable balance of trade. Deficit: situation in which a countries import exceed its exports creating a negative balance of trade. Balance of payments: flow of all money into or out of a country. Exchange rate: rate at which the currency of one nation can be exchanged for the currency of another nation. Euro: a common currency shared among most of the members of the european. Exporter: firm that distributes and sells products to one or more foreign countries. Importer: firm that buys products in foreign markets and them imports them for resale in its home country. International firm: firm that conducts a significant portion of its business in foreign countries.

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