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