The Basics of International Business Flashcards

The flashcards below are designed to help you learn about the basics of international business. Business is the act of selling and buying of goods and services. In the world today, companies are quickly growing thanks to the breakage of geographical barriers of doing business. See what types of business exist and how they develop using the cards.

39 cards   |   Total Attempts: 189
  

Cards In This Set

Front Back
Domestic business
The making, buying, and selling of goods and services within a country
International business
Refers to business activities needed for creating, shipping, and selling goods and services across national borders
Foreign world trade
Another name for international business
Absolute advantage
Exists when a country can produce a good or service at a lower cost than other countries (can result from an abundance of natural resources or raw materials in a country)
Comparative advantage
A situation in which a country specializes in the production of a good or service at which it is relatively more efficient
Imports
Items bought from other countries
Exports
Goods and services sold to other countries
Foreign debt
the amount a country owes to other countries
Balance of trade
  • the difference between a country’s total exports and the total imports
Trade surplus
  • if a country exports more than it imports (favorable trade position)
Trade deficit
  • if a country imports more than it exports (unfavorable trade position)
Balance of payments
  • the difference between the amount of money that comes into a country and the amount that goes out of it
positive or favorable
  • balance of payments occurs when a nation receives more money in a year than it pays out
negative or unfavorable
  • the result of a country sending more money out than it brings in
foreign exchange market
  • consists of banks that buy and sell different currencies (process of exchanging one currency for another occurs here)