ADMN 1016 KEY TERMS ASSIGNMENT

PROF. BRENT PUSCH CHAPTER 3

1 P absolute advantage

2 U balance of payments

3 AA balance of trade

4 M common market (trading bloc)

5 Y comparative advantage theory

6 AB contract manufacturing

7 W countertrading

8 C culture

9 AC devaluation

1 A dumping
0

1 H embargo
1
ADMN 1016 KEY TERMS ASSIGNMENT
PROF. BRENT PUSCH CHAPTER 3

1 Z ethnocentricity
2

1 D exchange rate
3

1 Q exporting
4

1 AD foreign direct investment (FDI)

5

1 AG foreign subsidiary
6

1 R free trade
7

1 N General Agreement on Tariffs and Trade (GATT)

8

1 AF import quota
9

2 X importing
0

2 I International Monetary Fund (IMF)

1

2 E joint venture
2
ADMN 1016 KEY TERMS ASSIGNMENT
PROF. BRENT PUSCH CHAPTER 3

2 L licensing
3

2 J multinational corporation
4

2 S North American Free Trade Agreement (NAFTA)

5

2 F producers' cartels
6

2 T strategic alliance
7

2 AE tariff
8

2 B trade deficit
9

3 G trade protectionism
0

3 V trade surplus
1

3 O World Bank
2

3 K World Trade Organization (WTO)

3
ADMN 1016 KEY TERMS ASSIGNMENT
PROF. BRENT PUSCH CHAPTER 3

Answer choices for questions 1 through 33

A) Selling products in a foreign country at lower prices than those charged in the producing country.
B) A nation's ratio of exports to imports.
C) The set of values, beliefs, rules, and institutions held by a specific group of people.
D) The value of one nation's currency relative to the currencies of other countries.
E) A partnership in which two or more companies (often from different countries) join to undertake a
major project.
F) Organizations of commodity-producing countries that are formed to stabilize or increase prices to
optimize overall profits in the long run.
G) The use of government regulations to limit the import of goods and services.
H) A complete ban on the import or export of a certain product or the stopping of all trade with a
particular country.
I) An international bank that makes short-term loans to countries experiencing problems with their
balance of trade.
J) An organization that manufactures and markets products in many different countries and has
multinational stock ownership and multinational management.
K) The international organization that replaced the General Agreement on Tariffs and Trade, and was
assigned the duty to mediate trade disputes among nations.
L) A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce
its product in exchange for a fee (a royalty).
M) 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.
N) A 1948 agreement that established an international forum for negotiating mutual reductions in
trade restrictions.
O) An autonomous United Nations agency that borrows money from the more prosperous countries
and lends it to less-developed countries to develop their infrastructure.
P) 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.
Q) Selling products to another country.
R) The movement of goods and services among nations without political or economic barriers.
S) An agreement that created a free-trade area among Canada, the United States, and Mexico.
T) A long-term partnership between two or more companies established to help each company build
competitive market advantages.
U) 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 investment.
V) A favourable balance of trade; occurs when the value of a country's exports exceeds that of its
imports.
W A complex form of bartering in which several countries may be involved, each trading goods for
) goods or services for services.
X) Buying products from another country.
Y) A theory that states that a country should sell to other countries those products that it produces
most effectively and efficiently, and buy from other countries those products that it cannot
produce as effectively or efficiently trade.
Z) An attitude that one's own culture is superior to all others.
AA An unfavourable balance of trade; occurs when the value of a country's imports exceeds that of its
) exports.
AB A foreign country's production of private-label goods to which a domestic company then attaches
) its brand name or trademark; also called outsourcing.
ADMN 1016 KEY TERMS ASSIGNMENT
PROF. BRENT PUSCH CHAPTER 3

AC Lowering the value of a nation's currency relative to other currencies.

)
AD The buying of permanent property and businesses in foreign nations.
)
AE A tax imposed on imports.
)
AF A limit on the number of products in certain categories that a nation can import.
)
AG A company owned in a foreign country by the parent company.
)