Marketing 1 Chapter 4

Why trade internationally?
It makes all people and businesses in the world both potential customers.
Balance of Trade
The difference in value between exports and imports of a nation.
WTO (World Trade Organization)
Coalition of nations that makes rules governing international trade.
Comparative Advantage
The valve that a nation gains by selling what it produces most efficiently.
Absolute Advantage
Occurs when a country has natural resources or talents that allow it to produce an item at the lowest cost possible.
NAFTA (North American Free Trade Agreement)
International trade agreement among the United States, Canada, Mexico.
European Union
Europe’s trading bloc.
Imports
Are goods and services purchased from other countries.
Exports
Are goods and services sold to other countries.
Cultural Facters
Language and symbols, holidays and religious observances, and social factors.
Tariff
A tax on imports.
Quota
Limits either the quantity or the monetary value of a product the may be imported.
Embargo
Total ban on specific good coming into and leaving a country.
Trade Barriers
Tariffs, quotas, and embargos.