BUS 1000 Chapter Notes - Chapter 3: Foreign Corrupt Practices Act, Common External Tariff, Trade Bloc

• School: Baruch College
• Department: Business Administration and Policy
• Course: BUS 1000
• Professor: Barry Rosen

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. Balance of payment - the difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investments. Balance of trade - the total value of a nation"s exports compared to its imports measured over a particular period. Common market - a regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. (an example is the european union) Contract manufacturing - a foreign country"s production of private-label goods to which a domestic company then attaches its brand name or trademark.