Global Economy and International Trade Concepts

These flashcards cover key vocabulary terms related to globalization and international trade concepts, aimed at helping students prepare for their exam.

Globalization

The movement toward a more interconnected and interdependent world.

Interdependent Economic Markets

Economic markets that rely on each other for trade and investment.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Offshoring

The movement of production or other functions from a domestic site to a foreign location.

Outsourcing

The assignment of certain tasks, such as production or accounting, to an outside company.

Competitive Advantage

The ability of a business to perform better than its competitors.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Tariffs

Taxes on imported goods or services.

Subsidies

Government payments to local producers to reduce their production costs.

Quotas

Limitations on the amount of an import allowed to enter a country.

Embargoes

A total restriction on an import or an export.

Local Content Requirements

Regulations stipulating that a certain portion of a good must be produced domestically.

Niche Market

A specialized segment of the market for a specific kind of product or service.

Dumping

Selling a product at a price below its cost in a foreign country to drive competition out of business.

Global Exchange Rate

How much a currency is worth in a different country.

Free Trade

The unlimited flow of goods and services between countries.

Protectionist Trade Barriers

Measures taken by a government to control trade and protect domestic industries.

CSR (Corporate Social Responsibility)

Business practices involving initiatives that benefit society.

Infant Industry

A new or developing industry that may need protection to grow and compete.

Competitive Price

A price that is in line with or better than the prices of competitors.

Standard of Living

The level of wealth, comfort, and material goods available to a group or society.