1TermsGlobal business- the buying and selling of goods and services by people from different countriesMultinational corporation- a corporation that owns businesses in two or more countriesDirect foreign investment- a method of investment in which a company builds a new business or buys anexisting business in a foreign countryTrade barriers- government-imposed regulations that increase the cost and restrict the number of importedgoodsProtectionism- a government’s use of trade barriers to shield domestic companies and their workers fromforeign competitionTariff- a direct tax on imported goodsNontariff barriers- nontax methods of increasing the cost or reducing the volume of imported goodsQuota- a limit on the number or volume of imported productsVoluntary export restraints- voluntarily imposed limits on the number or volume of products exported to aparticular countryGovernment import standard- a standard ostensibly established to protect the health and safety of citizensbut, in reality, is often used to restrict importsSubsidies- government loans, grants, and tax deferments given to domestic companies to protect themfrom foreign competitionCustoms classification- a classification assigned to imported products by government officials that affectsthe size of the tariff and the imposition of import quotasGeneral Agreement on Tariffs and Trade (GATT)- a worldwide trade agreement that reduced andeliminated tariffs, limited government subsidies, and established protections for intellectual propertyWorld Trade Organization (WTO)- the successor to GATT; the only international organization dealingwith the global rules of trade between nations; its main function is to ensure that trade flows as smoothly,predictably, and freely as possible.Regional trading zones- areas in which tariff and nontariff barriers on trade between countries are reducedor eliminatedMaastricht Treaty of Europe- a regional trade agreement among most European countriesNorth America Free Trade Agreement (NAFTA)- regional trade agreement among the United States,Canada, and MexicoDominican Republic Central America Free Trade Agreement (CAFTA-DR)- a regional trade agreementamong Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and theUnited States.Union of South American Nations (UNASUR)- a regional trade agreement among Argentina, Brazil,Paraguay, Uruguay, Venezuela, Bolivia, Colombia, Ecuador, Peru, Guyana, Suriname, and ChileAssociations of Southeast Asian Nations (ASEAN)-a regional trade agreement among BruneiDarussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Phillipines, Singapore, Thailand, andVietnamAsia-Pacific Economic Cooperation (APEC)- a regional trade agreement among Australia, Canada, Chile,the People’s Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru,Russia, South Korea, Taiwan, the United States, and all the members of ASEAN except Cambodia, LaoPDR, and Myanmar.
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