BMAL 604 ch 3 and 4 study questions.docx - International...

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International trading 74 - generates business and government revenue and promotes varying levels of trust between trading partners. Trade deficit 74 - Occurs when a country is importing more than it is exporting. Actions that promote trade - Special government agencies, subsidies, export financing, and foreign trade zones. International Trade Administration (ITA) 75 - Developed by the U.S. Department of Commerce to stimulate economic opportunities for U.S. businesses and their employees. Subsidies 75 - Special privileges offered by the government in order to attract businesses to a region or to provide them with the funding to operate successfully. Export financing 75 - Used by a company when it sells and ships products overseas due to the extra time and energy required. Export-Import Bank (Ex-Im Bank) 76 - The official export credit agency of the United States. supplier's credit 76 - A loan in which the exporter is covered, but the value of the cover will be less than the value of the contract. buyer's credit 76 - More closely associated with long-term loans to protect parties from potential problems that might arise during an extended time period. Foreign-Trade Zones (FTZ) 76 - Alleviates some of the costs associated with free trade in the rapidly increasing global economic environment; created in 1934; allows merchandise to be held without being subject to Customs duties and other taxes. tariff 77 - A tax applied to selected categories of imports. quota 77 - Limit the quantity of imports allowed into a nation; place power in the hands of customs officials which may lead to greater corruption. embargos 78 - Economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals; motivated by political, economic, or moral reasons. local content requirements 78 - Hinder foreign exports from reaching a nation or being purchased in a domestic market and placing restrictions on domestic businesses. administrative delays 78 - Imposing a waiting period between the determination of a product's quality and when it can be sold. If excessive, both countries usually lose profits. smuggling - The act of illegally importing or exporting goods; can be increased by both tariffs and quotas.

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