Business unit 3

Free trade

International trade unencumbered by restrictive measures（自由貿易）

Comparative Advantage

By specializing and engaging in trade, countries can increase their overall economic output, leading to a higher standard of living for all trading partners.（比較優勢）

Importing

purchasing goods or services from another country and bringing them into one’s own country（進口）

Exporting

selling and shipping goods or services to another country（出口）

Balance of trade

Total value of the products a nation exports minus the total value of the products it imports, over some period of time.（貿易餘額）

Trade deficit

A country imports more than it exports（貿易赤字）

Trade surplus

A country sells more goods and services to other countries than it buys from them（貿易順差）

Balance of payments

The sum of all payments a country receives from other countries minus the sum of all payments it makes to the other countries, over some specified period of time（國際收支）

Exchange rate

The rate at which the money of one country is traded for the money of another（匯率）

Protectionism

Government policies aimed at shielding a country’s industries from foreign competition（保護主義）

Tariffs

1.Taxes levied on imports 2. Designed to protect domestic industries by making foreign products more expensive to consumers（關稅）

Import quotas

Limits placed on the quantity of imports a nation will allow for a specific product（進口配額）

Embargo

A total ban on trade with a particular nation（禁運）

Export subsidies

A form of financial assistance in which producers receive enough money from the government to allow them to lower their prices to compete more effectively in the global market（出口補貼）

Dumping

Charging less than the actual cost or less than the home

World Trade Organization (WTO)

Permanent forum for negotiating, implementing, and monitoring international trade procedures, and for mediating trade disputes（世界貿易組織）

International Monetary Fund (IMF)

Formed to monitor global financial developments, provide technical advice and training, provide short

World Bank

1. is now involved in hundreds of projects around the world aimed at addressing poverty, health, education, and other concerns in developing countries 2. Is a United Nations agency owned by its 187 member nations（世界銀行）

Trading blocs

Organizations of nations that remove trade barriers among their member countries and establish uniform barriers to trade with nonmember nations（貿易集團）

North American Free Trade Agreement (NAFTA)

Formed by the United States, Canada, and Mexico to pave the way for the free flow of goods, services, and capital within the bloc through the phased elimination of tariffs and quotas（北美自由貿易協定）

European Union (EU)

Constitutes more than two dozen countries and a half billion people Now accounts for the world’s largest economy（歐洲聯盟）

Asia

Pacific Economic Cooperation (APEC)

Licensing

Agreement to produce and market another company’s product in exchange for a royalty or fee（技術／專利授權）

International Franchising

Selling the rights to use a full business model, such as a fast

International strategic alliances and joint ventures

Forming a long

Foreign Direct Investment (FDI)

Investment of money by foreign companies in domestic business enterprises（外商直接投資）

Multinational Corporations (MNCs) Companies with operations in more than one country（跨國公司）

Multidomestic strategy

1. Decentralized approach 2. The company creates highly independent operating units in each new country 3. Individual divisions or subsidiaries are free to pursue strategies that align with local markets（多國內策略）

Global strategy

1. Highly centralized approach 2. Headquarters in the home country making all major decisions 3. Same approach applied as uniformly as possible around the world（全球化策略）

Transnational strategy

1. Hybrid approach 2. Economies of scale through uniform globalized activities that are adapted as needed to local conditions（跨國策略）

Transnational

Pursues economies of scale through uniform globalized activities that are adapted as needed to local conditions（跨國企業／跨國的）