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Chapter 5

Chapter 5 Important Vocab

Management (MGT)
Course Code
Chris Bovaird

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Chapter 5 Vocab
Globalization: The integration of markets globally
Imports: Products that are made or gown abroad and sold in Canada
Exports: Products made or grown in Canada that are sold abroad
Capital Mobility: Movement of money from country to country
Per capital 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 cheaper 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 strategies/
structures/ rivalries are favourable
International competitiveness: the ability of a country to generate more wealth than its
competitors in the world markets.
Balance of Trade: The difference in value between a country total export and import. Export
Balance of Payment: The different between money flowing in to and out of a country as a result
of trade and other transaction
Exchange Rate: The ratio of one currency to another
Euro: a common currency shared among most of the members of the European Union
Independent agent: A foreign individuals, or organization, who agrees to represent an exporters
interests in foreign markets.
Licensing Arrangements: An arrangement by an owner of a process or product to allow another
business to produce, distribute, or market it for a fee or royalty
Branch Offices: A location that an exporting firm establishes in a foreign county in order to sell
its products more effectively
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