absolute advantage - ANSWER the ability to produce a good using fewer inputs than another
producer
balance of trade - ANSWER the difference between a country's total exports and total imports
comparative advantage - ANSWER the ability to produce a good at a lower opportunity cost
than another producer
contract manufacturing - ANSWER private label manufacturing by a foreign company
exports - ANSWER goods sold to other countries
foreign direct investment - ANSWER a capital investment that is owned and operated by a
foreign entity
foreign subsidiary - ANSWER a company owned in a foreign country by another company, called
the parent company
international franchise - ANSWER agreement in which a domestic company (franchiser) gives a
foreign company (franchisee) the right to use its brand and sell its products.
international joint ventures - ANSWER a partnership of two or more participating companies
that have joined forces to create a separate legal entity
international strategic alliance - ANSWER an organizational relationship that allows companies
in different countries to pool resources and share risks as they enter new markets
producer
balance of trade - ANSWER the difference between a country's total exports and total imports
comparative advantage - ANSWER the ability to produce a good at a lower opportunity cost
than another producer
contract manufacturing - ANSWER private label manufacturing by a foreign company
exports - ANSWER goods sold to other countries
foreign direct investment - ANSWER a capital investment that is owned and operated by a
foreign entity
foreign subsidiary - ANSWER a company owned in a foreign country by another company, called
the parent company
international franchise - ANSWER agreement in which a domestic company (franchiser) gives a
foreign company (franchisee) the right to use its brand and sell its products.
international joint ventures - ANSWER a partnership of two or more participating companies
that have joined forces to create a separate legal entity
international strategic alliance - ANSWER an organizational relationship that allows companies
in different countries to pool resources and share risks as they enter new markets
