COMMERCE 1E03 Chapter Notes - Chapter 3: Theory-Theory, Absolute Advantage, Exchange Rate
22 Feb 2015
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Document Summary
Absolute advantage- the advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. Trade surplus- a favorable balance of trade; occurs 4rzswhen the value of a country"s exports exceeds that of its imports. Trade deficit- an unfavorable balance of trade; occurs when the value of a country"s imports exceed that of its exports. Joint venture- a partnership in which 2 or more companies join to undertake a major project. Strategic alliance- a long-term partnership between2 or more companies established to help each company build competitive market advantages. Foreign subsidiary- a company owned in a foreign country by the parent company. Multinational corporation- a company that manufactures and markets products in many different countries and has multinational stock ownership and management. Culture- the set of values, beliefs, rules and institutions held by a specific group of people.
