Chapter 5 (5.1 and 5.5) Flashcards
Globalization
the integration of markets globally - the world is becoming a single interdependent system
Imports
purchased in Canada; manufactured in other countries
Exports
made in Canada; sold in other countries
Major World Marketplace
North America, Europe, Pacific/Asia
Economic Differences
the role of government in the economy
planned vs. market economies
capitalist
socialist
communist
Quota
limitations on importation of a product class
Embargo
forbidding export/import from a nation
Tariffs
a tax on imported goods
Subsidies
government financial assistance for domestic firms
Protectionism
protects local business at the expense of free market competition
Local Content Laws
requires that at least part of the product be made in the foreign country/area (possible joint venture)
Business Practices
Dumping
selling goods abroad for less than a firm charges at home; illegal in most nations
Cartels
associations of producers created to control supply and demand (e.g., O P E C)
