Textbook Notes (363,675)
Canada (158,529)
MGTA01H3 (583)
H Laurence (25)

Summary of Terms CH 4,6,7,8,10

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Management (MGT)
H Laurence

CHAPTER 4 Globalization the integration of markets globally Imports products that are made or grown abroad and sold in Canada Exports products made or grown in Canada that are sold abroad General agreement on tariffs and trade (GATT) international trade agreement to encourage the multilateral reduction or elimination of trade barriers World trade organization (WTO) organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices European union (EU) agreement among major western European nations to elimination or make uniform most trade barriers affecting group members. North American free trade agreement (NAFTA) agreement to gradually eliminate tariffs and other trade barriers among the United States, Canada, and Mexico. Per capita income the average income per person of a country Absolute advantage a nations ability to produce something more cheaply or better than any other country Comparative advantage a nations ability to produce some products more cheaply or better than it can others. National competitive advantage a country will be inclined to engage in international trade when factor conditions, demand conditions, related and supporting industries, and strategiesstructuresrivalries are favourable Balance of trade the difference in value between a countrys total exports and its total imports Trade deficit occurs when a country imports more than it exports Trade surplus occurs when a country exports more than it imports. Balance of payments the difference between many flowing in to and out of a country as a result of trade and other transactions Exchange rate the ratio of one currency to another Euro a common currency shared among most of the members of the European union excluding Denmark, Sweden, and the United Kingdom Exporter a firm that makes products in one country and then distributes and sells them in others. Importer a firm that buys products in foreign markets and then imports them for resale in its home country International firm a company that conducts a significant portion of its business abroad and maintains manufacturing facilities overseas Multinational firm controls assets, factories, mines, sales, offices, and affiliates in two or more foreign countries. Independent agent a foreign individual or organization who agrees to represent an exporters interest in foreign markets. Licensing arrangement an arrangement by an owner of a process or product to allow another business to produce, distribute, or market it for a free or royalty Branch office a location that an exporting firm establishes in a foreign country in order to sell its products more effectively Strategic alliance an enterprise in which two or more persons or companies temporality join forces to undertake a particular project Foreign direct investment (FDI) buying or establishing tangible assets in another country Investment Canada replaced FIRA in 1985, designed primarily to attract and facilitate foreign investment in Canada. Quota a restriction by one nation on the total number of products of a certain type that a be imported from another nation Embargo a government order forbidding exportation andor importation of a particular product Tariff a tax levied on imported products Subsidy a government payment to help domestic business compete with foreign firms Protectionism protecting domestic business at the expense of free market competition Localcontent laws laws requiring that products sold in a particular country be at least partly made in that country Business practice law - law or regulation governing business practices in given countries Cartel any association of producers whose purpose is to control supply of and prices for a given product www.notesolution.com
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