International Trade and Globalization Exam Review

These flashcards encompass key vocabulary terms and concepts related to international trade and globalization based on the lecture notes.

International Business

Business activities that involve business transactions across national borders.

Globalization

The process by which businesses develop international influence or start operating on an international scale.

Outsourcing

The practice of obtaining goods or services from an external source, often from another country.

Interdependence

A condition where countries or economies rely on each other for goods, services, and resources.

Primary Industries

Industries that extract or harvest natural resources, such as agriculture and mining.

Tertiary Industries

Industries that provide services to consumers and businesses, including retail and hospitality.

Protectionism

The economic policy of restricting imports from other countries through tariffs or quotas.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Trade Embargo

A government order that restricts commerce or trade with a specific country or the exchange of specific goods.

Franchising

A method of scaling a business by allowing others to operate using the company's name and systems.

Value-Added

The enhancement a company gives its product or service before offering the product to customers.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for a specific task.

Self-Sufficient

The ability of an economy to fulfill all its needs without external assistance.

Slow-balization

A trend moving away from globalization towards localizing supply chains, often referred to as friend-shoring.

Trade Quota

A government-imposed limit on the amount of a specific product that can be imported or exported during a given time.

Foreign Portfolio Investment

Investing in financial assets such as stocks and bonds in another country.