chapter 5 Flashcards
blog
a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries
buyer for export
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
capital intensive
using more capital than labor in the production process
contract manufacturing
private label manufacturing by a foreign company
countertrade
a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
Dominican Republic-Central America Free Trade Agreement
a trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
dumping
the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter
European Union
a free trade zone encompassing twenty-eight European countries
exchange rate
the price of one country’s currency in terms of another country’s currency
export agent
an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market
export broker
an intermediary who plays the traditional broker’s role by bringing buyer and seller together
exporting
selling domestically produced products to buyers in other countries
floating exchange rates
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
general agreement on Tariffs and Trades [GATT]
a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
