Chapter 3

• International Business- business activities needed for creating, shipping, and selling goods and services across national borders• Imports: Items bought from other

countries• Exports: Goods and service sold to

others countries

• Balance of trade: difference between a country a country total exports and total imports• Balance of payments-difference

between the amount of money that country and the amount that goes out of it• Exchange rate: The value of a

currency in one country compared with the value in country

• Trade Barriers: Restrictions to free trade • Quota: Limit on the quantity of a

product that may be imported or exported within a given period• Tariff-tax that a government places

on certain imported products• Embargo: Stop the export or

import of a product completely

•Free Trade agreement: member countries agree to remove duties and trade barriers on products traded among them•Common Markets: members do away with duties and others trade barriers

•Multinational company (MNC): an organization that does business in several countries•Global strategy: uses the same product and marketing strategy worldwide

•Multination strategy: treats each country market differently•Joint Venture: Is an agreement between two or more companies to share a business project