Chapter 2 International Trade Zimmer

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Labor

Labor

Refers to all of the people who work, including full and part-time workers, managers, and individuals in both private and public sectors.

Capital

Includes money to start and operate a business, as well as the goods used in the production process.

Entrepreneurship

Refers to the skills of individuals willing to invest their time and money to run a business.

International Trade

The exchange of goods and services among nations, such as China, Japan, and Europe.

Imports

Goods and services purchased from other countries.

Exports

Goods and services sold to other countries.

Electronics and Technology

Includes computers and smartphones from China, South Korea, and Japan, and semiconductors from Taiwan.

Automobiles and Automotive Parts

Cars from Japan, Germany, and South Korea, and auto parts from Mexico and Canada.

Energy Products

Crude oil and natural gas imported from Canada, Saudi Arabia, and Mexico.

Consumer Goods

Clothing and textiles from Bangladesh, Vietnam, and India, and furniture from China and Vietnam.

Pharmaceuticals

Medicines and medical devices imported from Ireland, Germany, and Switzerland.

Aircraft and Aerospace

Commercial aircraft and aerospace parts exported to countries like France, China, and Germany.

Agricultural Products

Soybeans, corn, and wheat exported to China, Mexico, and Japan.

Technology and Software

Cloud computing services and software exported to global markets, including Europe and Asia.

Benefits of International Trade

Consumers benefit from competition, leading to high-quality products at lower prices and more purchasing options.

Productivity

Output per worker hour measured over a defined period of time.

Inflation

Refers to rising prices for consumers, affecting food, clothing, housing, and more.

Business Cycle

Recurring changes in economic activity, including expansion, recession, trough, and recovery.

Expansion

A period of economic prosperity characterized by low unemployment and increased production and spending.

Recession

A period of economic slowdown lasting at least two quarters, marked by high unemployment and reduced consumer spending.

Depression

A prolonged recession with impossible job finding and no spending, leading to economic turmoil.

Recovery

A period of renewed economic growth following a recession or depression.

Tariffs

Taxes on imports used to increase revenue for a country.

Embargo

A total ban on specific goods coming into and leaving a country.

Licensing

Allowing another company to use a trademark, patent, or company name for a fee or royalty.

Contract Manufacturing

Hiring a foreign manufacturer to produce products according to a company's specifications.

Proprietary Information

A product's design and specific patent information.

Private Enterprise

Business ownership by ordinary people, also known as free enterprise.

Basic Elements of Free Enterprise

Freedom to own property, compete, take risks, and make a profit.

Patent

Ownership rights to an invention or idea, with a utility patent indicating true ownership.

Trademark

A word, name, symbol, sound, or color that identifies a good or service.

Copyright

Exclusive rights to writings, music, and artwork authorized by an individual.