RSM100Y1 Chapter Notes - Chapter 4: Multinational Corporation, International Trade, Electronic Component
Document Summary
Exports: domestic produced goods and service sold in other countries. Imports: foreign goods and service purchased by domestic customer. Balance of trade: the difference between a nations export and imports. Balance of payments: the overall money flows into and out of a country. E(cid:454)(cid:272)ha(cid:374)ge rate: the (cid:448)alue of o(cid:374)e (cid:272)ou(cid:374)t(cid:396)(cid:455)"s (cid:272)u(cid:396)(cid:396)e(cid:374)(cid:272)(cid:455) i(cid:374) te(cid:396)(cid:373)s of the (cid:272)u(cid:396)(cid:396)e(cid:374)(cid:272)ies of othe(cid:396) (cid:272)ou(cid:374)t(cid:396)ies. Devaluation: a (cid:396)edu(cid:272)tio(cid:374) i(cid:374) (cid:272)u(cid:396)(cid:396)e(cid:374)(cid:272)(cid:455)"s (cid:448)alues i(cid:374) terms of other currencies or in terms of a fixed standards. Infrastructure: the (cid:271)asi(cid:272) s(cid:455)ste(cid:373)s of a (cid:272)ou(cid:374)t(cid:396)(cid:455)"s (cid:272)o(cid:373)(cid:373)u(cid:374)i(cid:272)atio(cid:374) t(cid:396)a(cid:374)spo(cid:396)tatio(cid:374) a(cid:374)d e(cid:374)e(cid:396)g(cid:455) facilities. Quota: a limit set on the amounts of particular product that can be imported. Dumping: selling product in other countries at prices below production costs or below typical prices in the home market to capture market share from domestic competitors. Embargo: a total ban on importing specific products or a total stop to trading with a particular country.
