GMS723-CLASS2

Vocabulary flashcards covering key terms from the lecture on international trade, including trade agreements, trade types, and logistics concepts.

CETA

Canada–European Union Comprehensive Economic and Trade Agreement; reduces barriers to trade and investment between Canada and the EU.

Brexit

The United Kingdom’s withdrawal from the European Union.

USMCA

United States–Mexico–Canada Agreement; trilateral free trade agreement among the three countries.

European Union population (EU)

The EU has about 450 million people.

United States population (US)

The United States has about 380 million people.

Surplus

Exports exceed imports; a positive balance of trade.

Deficit

Imports exceed exports; a negative balance of trade.

Proximity

Geographic closeness that influences trade patterns and stability with partners.

Geopolitical risk

Risk from political upheaval, wars, or government actions affecting cross-border trade.

Visible trade

Trade in tangible goods that can be touched and shipped in bulk.

Invisible trade

Trade in services; intangible goods that are not physically shipped as tangible products.

Merchandise trade

Trade in physical goods as recorded in government data.

Current account balance

Broad measure of a country’s economic transactions with the world, including trade, services, and income flows.

Balance of trade

Exports minus imports; determines surplus or deficit in goods.

Exports

Goods or services sold to foreign markets.

Imports

Goods or services purchased from foreign markets.

Foreign Direct Investment (FDI)

Direct investment by a company or country into a foreign market, often involving ownership or control (e.g., 10%+ ownership) through activities like subsidiaries or joint ventures.

Joint venture

A collaborative business undertaking between two or more firms in a foreign market.

Subsidiary

A foreign-owned company controlled by a parent company.

Greenfield investment

Building new facilities from the ground up in a foreign country.

Brownfield investment

Purchasing and upgrading existing facilities in a foreign country.

Strategic alliance

A cooperative agreement between firms to pursue goals while remaining independent.

Franchise

A licensing arrangement allowing a foreign partner to operate using the brand and business model.

Accidental export

Unintentional export where a domestic sale is routed to foreign markets by the buyer’s actions.

Active export

Intentional export; producing to ship goods to foreign markets.

International marketing

Promoting and selling a product in foreign markets, possibly with licensing or alliances.

Entrepot

A hub where goods are brought in, possibly reconfigured, and then re-exported to other markets.

HS code

Harmonized System code used by customs to classify goods; typically 6 digits, sometimes 8 or 10 digits; administered by the USITC and governed by the World Customs Organization.

World Customs Organization (WCO)

Global body that oversees international customs standards and HS coding.

World Trade Organization (WTO)

International organization that governs international trade rules and resolves disputes.