The Global Context of Business 2023 with complect solution

globalization process by which the world economy is becoming a single interdependent system import product made or grown abroad but sold domestically export product made or grown domestically but shipped and sold abroad North American Free Trade Agreement agreement to gradually eliminate tariffs and other trade barriers among the United States, Canada, and Mexico European Union agreement among major European nations to eliminate or make uniform most trade barriers affecting group members Association of Southeast Asian Nations organization for economic, political, social, and cultural cooperation among Southeast Asian nations General Agreement on Tariffs and Trade international trade agreement to encourage the multilateral reduction or elimination of trade barriers World Trade Organization organization through which member nations negotiate trading agreements and resorb disputes about trade policies and practices Balance of Trade economic value of all products a country exports minus the economic value of all products it imports Trade Deficit situation in which a country's imports exceed its exports, creating a negative balance of trade Trade Surplus situation in which a country's exports exceed its imports, creating a positive balance of trade Balance of Payments flow of all money into or out of a country Exchange rate rate at which the currency of one nation can be exchanged for the currency of another nation Euro a common currency shared among most of the members of the European Union Absolute Advantage the ability to produce something more efficiently than any other country can Comparative Advantage the ability to produce some products more efficiently than others National Competitive Advantage international competitive advantage stemming from a combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures, and rivalries Outsourcing the practice of paying suppliers and distributors to perform certain business processes or to provide needed materials or services Offshoring the practice of outsourcing to foreign countries Exporter firm that distributes and sells products to one or more foreign countries Importer firm that buys products in foreign markets and then imports them for resale in its home country International Firm firm that conducts a significant portion of its business in foreign countries Multinational Firm firm that designs, produces, and markets products in many countries Independent Agent foreign individual or organization thats agrees to represent an exporter's interest Licensing Arrangement arrangement in which firms choose foreign individuals or organizations to manufacture or market their products in another country Branch Office foreign office set up by an international or multinational firm Strategic Alliance arrangement in which a company fin