Marketing Chapter 4/Global Analysis

What is international trade?

• exchanges of goods & services among nations
• goods & services purchased from other countries
• goods & services sold from other countries

Goods & services purchased from other countries are called

• imports
  
• exports
• free trade
• quota

Goods & services sold to other countries are called

• imports
• exports
  
• tariff
  
• free trade

What are the 2 types of economic advantages that countries might have?

• interdependence of nations 
• absolute & comparative
  
• balance of trade & free trade

Why does the interdependence of nations exist?

• absolute advantage
• each country possesses unique resources & capabilities
• comparative advantage
• absolute & comparative advantage

A country has natural resources that allow it to produce an item at the LOWEST cost possible, is called 

• absolute advantage
• comparative advantage

Foreign direct investment is

• difference in value between a nation's exports & imports
• an establishment of a business in a foreign country
• government policy that restricts investments
• Europe's trading bloc

A total ban on specific goods coming into & leaving a country 

• embargo 
• tariff
• quota
• protectionism

Creating special products or promotions for certain countries is called 

• customization 
  
• protectionism 
• embargo
• tariff

A global coalition of 164 governments that makes the rules for governing international trade

• NAFTA

• EU

• WTO

• USA