Importing
Buying products from another country
Exporting
Selling products to another country
Absolute Advantage
Advantage a country has producing a single good as a monopoly, or more efficiently than all others
Comparative Advantage
Country should sell to other countries its best products and buy products from products it can't produce efficiently
Tariffs
A tax on imports
Quotas
A limit imposed on imported items
Embargo
The stopping of all trade with a country
Infrastructure
A countries means of transportation routes and trade accessibility
GATT
General Agreement on Tariffs and Trade: Negotiates mutual reductions in trade restrictions
Licensing Agreement
An agreement that allows a foreign company to produce its product in exchange for a royalty
Franchising
The right to use a specific business' name and sell its products or services in a given territory
Contracting
Designating work to a third party through a contract.
Joint Ventures
A partnership between 2 or more companies for a major project
Direct Investments
Directly investing into a company
European Union
Trade agreement between the countries of Europe
NAFTA
North American Free Trade Agreement