AFM 132 Unit 2 Key Terms

5.0(1)
studied byStudied by 9 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/28

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

29 Terms

1
New cards
Balance of Trade
Relationship between imports and exports
2
New cards
Trade surplus
Exports > Imports
3
New cards
Trade deficit
Imports > Exports
4
New cards
Business
Activity done for profit
5
New cards
Comparative advantage
Countries should export what they produce most efficiently and import what they can't
6
New cards
Contract manufacturing/outsourcing
Finding a foreign firm to make your product, then have your own name or trademark attached
7
New cards
Corporation
Incorporated business considered a separate legal entity. Limited liability
8
New cards
Crown corporation
Government owned and ran company
9
New cards
Embargo
Ban on import/export of specific products
10
New cards
Exporting
Sale of goods/services to another country
11
New cards
Foreign Direct Investment
Directly purchasing assets and operating abroad
12
New cards
Foreign Subsidiary
Company owned by parent company operating abroad
13
New cards
Franchising
Franchisor leases IP, patents, brand name and product rights to franchisees
14
New cards
Free market economy
Where resources are allocated by the free market
15
New cards
Free trade
Where goods and services can be traded between countries without economic or political obstruction
16
New cards
Importing
Buying goods/services from abroad
17
New cards
Import quota
Limit to quantity of a product that can be imported
18
New cards
Joint venture
Two or more companies partner for a project
19
New cards
Licensing
Domestic company allowing a foreign company to make their product in exchange for a royalty
20
New cards
Multinational corporations
Large companies with physical manufacturing and marketing in many different countries
21
New cards
Mixed economy
Where both government and free market allocate resources
22
New cards
Non-tariff barriers to trade
Non tariff restrictions to trade (ex. regulations, standards, protocol)
23
New cards
Partnership
Business created by two or more people who share resources, expertise in leading business. Unlimited liability.
24
New cards
Privatization
Sale of government owned assets such as crown corporations
25
New cards
Small business
Independently owned and operated, not dominant in field of operation and has roughly between 1 and 99 employees
26
New cards
Sole proprietorship
Business owned and operated by one person, revenue included as a part of personal income. Unlimited liability.
27
New cards
Strategic alliance
Two or more companies partnering to create long term market advantages
28
New cards
Tariffs
Taxes on imports
29
New cards
Trade protectionism
Government regulations used to limit imports and protect domestic producers