A Fast Growing Form Of Foreign Direct Investment Is

Question: absolute advantage

Answer: the advantage that exists when a country has a monopoly on producing a product or can produce it more efficiently

Question: balance of payments

Answer: difference between $ coming into a country and $ leaving, plus $ flows from tourism, foreign aid, military expenditures, and foreign investment

Question: balance of trade

Answer: total value of a nation’s exports compared to its imports

Question: common market (trading bloc)

Answer: a group of countries that have a common external tariff, no internal tariffs, and a coordination of laws; EU is an example

Question: comparative advantage theory

Answer: country should sell products to countries they produce more efficiently, and buy from those that produce more efficiently

Question: countertrading

Answer: bartering between many countries, each trading goods for goods or services for services

Question: devaluation

Answer: lowering the value of a nation’s currency relative to other currencies

Question: dumping

Answer: selling products in a foreign country at lower prices that those in charge in the producing country

Question: embargo

Answer: complete ban on the import or export of a certain item

Question: foreign direct investment (FDI)

Answer: buying of permanent property and businesses in foreign nations