The difference between the value of a country’s exports and the value of its imports during a specific time.

Active ownership of a foreign company or of manufacturing or marketing facilities in a foreign country.

A total ban on imports or exports of a product.

The practice of selling domestically produced goods to buyers in another country.

A limit on the quantity of a certain good that can be imported.

An international organization, founded in 1945, that promotes trade, makes short-term loans to member nations, and acts as a lender of last resort for troubled nations.

A 1993 agreement creating a free-trade zone including Canada, Mexico, and the United States.

The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas.

A tax imposed on imported goods.

An unfavorable balance of trade that occurs when a country imports more than it exports.

A favorable balance of trade that occurs when a country exports more than it imports.

An organization established by the Uruguay Round in 1994 to oversee international trade, reduce trade barriers, and resolve disputes among member nations.

The purchase of a target company by another corporation or by an investor group typically negotiated with the target company board of directors.

A group of people elected by the stockholders to handle the overall management of a corporation, such as setting major corporate goals and policies, hiring corporate officers, and overseeing the firm’s operations and finances.

A merger of companies in unrelated businesses; done to reduce risk.

A legal entity with an existence and life separate from its owners, who are not personally liable for the entity’s debts. A corporation is chartered by the state in which it is formed and can own property, enter into contracts, sue and be sued, and engage in business operations under the terms of its charter.

In a franchising arrangement, the individual or company that sells the goods or services of the franchisor in a certain geographic area.

In a franchising arrangement, the company that supplies the product or service concept to the franchisee.

Partners who have unlimited liability for all of the firm’s business obligations and who control its operations.

A merger of companies at the same stage in the same industry; done to reduce costs, expand product offerings, or reduce competition.

Partners whose liability for the firm’s business obligations is limited to the amount of their investment.They help to finance the business but do not participate in the firm’s operations.

The combination of two or more firms to form one new company.

A business that is established, owned, operated, and often financed by one person.

A merger of companies at different stages in the same industry; done to gain control over supplies of resources or to gain access to different markets