International Business Review

Vocabulary flashcards based on the key concepts from an international business lecture.

International Business

All commercial activities/transactions between companies.

Globalization

Integration of economies around the world.

Comparative Advantage

Specializing in producing goods that a country can produce more efficiently than others.

Opportunity Cost

The value of the next-best alternative when a choice is made.

Free Trade

Trade of goods without barriers or restrictions.

Protectionism

Policy of protecting domestic industries from foreign competition.

Positive Effects of Globalization

Includes more job opportunities, wider market access, cheaper goods, technology transfer, and cultural exchange.

Negative Effects of Globalization

Includes stronger competition for local businesses, job displacement, economic dependence, and environmental impacts.

Key Factors Promoting International Trade

Includes technology, transportation, trade liberalization, global competition, and consumer demand.

Mercantilism

Economic theory that advocates for exporting more than importing.

Absolute Advantage

The ability of a country to produce goods with fewer resources than another country.

Global Trade Policies

Government rules regulating international trade.

Tariffs

Taxes imposed on imported goods.

Non-Tariff Barriers (NTBs)

Restrictions other than tariffs that limit foreign competition.

World Trade Organization (WTO)

An organization that promotes free and fair trade globally.

International Monetary Fund (IMF)

An organization that ensures international financial stability.

World Bank

An institution that supports development projects and financing.

Types of Trade Agreements

Includes bilateral, multilateral, and regional agreements.

Asean Economic Community

Aims to create a single market among ASEAN member states.

Depreciation of Currency

Decrease in the value of a currency, making exports cheaper.

Incoterms

International commercial terms that define shipping responsibilities.