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Unformatted text preview: Chapter 5 Glossary buyer for export an intermediary in the global market who assumes all ownership risks and sells globally for its own account capital intensive using more capital than labor in the production process Central America Free Trade Agreement (CAFTA) a trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States 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 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 (EU) a free trade zone encompassing 27 European countries export agent an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in...
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- Spring '08