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1. abroad (n.) - in a foreign country, overseas.
e.g.: We hope to sell our new product both in the United States and abroad.
If you are traveling abroad, you need a passport.
2. accrue (v.) - to accumulate, to collect.
e.g.: Interest of 10% per annum accrues on amounts deposited in a savings account.
3. ad valorem (Latin) - according to the value.
e.g.: Most sales taxes are ad valorem taxes. They are based on the value of the item sold.For example, 6% of the value of the item is added to the cost.
4. avantage (n.) - a circumstance or situation which provides a benefit.
e.g.: Because of favorable weather conditions, California has an advantage in the production of fruits and vegetables.
5. balance of payments also balance of trade(n.) - the difference between the value of exports and the value of imports.
e.g.: Japan has the balance of payments surplus because it exports more than it imports.
6. deficit (n.) - an excess of expenses or debits over income or credits.
e.g.: A country that imports more than it exports has a balance of trade deficit.
7. devaluation (n.) - an official reduction in the exchange rates between the currencies of two countries.
e.g.: The British Pound Sterling was formerly worth $3.20 (U.S.). after devaluation it was worth only $2.80 (U.S.) Because of floating exchange rates, there is not a great need for currency devaluations. Supply and demand determine the exchange rates.
8. division of labor (n.) - a situation in which one group of workers performs one type of work, and another group performs another type.
e.g.: An international division of labor occurs when one country concentrates its labor force on the production of items it most efficiently produces with the intention of trading them for items which are most efficiently produced in another country.
9. dumping (n.) - the selling of products in foreign countries at prices below those charged in the producing country, or at prices below the actual cost of production.
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e.g.: American steel companies accused government-subsidized British Steel of dumping steel on the United States market.
10. free market (n.) - buying and selling activity unrestricting by government price regulation.
e.g.: There is now a free market for clothing in the United States. The price is not controlled by the government.
11. interdependence (n.) - the reliance (of countries) on one another.
e.g.: Interdependence has developed among trading nations. The United States is dependent on others for oil imports and other nations are dependent upon the U.S. for food exports.
12. labor intensive (n.) - refers to the use of hand labor to a greater extent than the use of raw materials or capital for the production of an item.
e.g.: The clothing industry is very labor intensive. It takes a lot of manual labor to sew clothes.
13. legal tender (n.) - the official currency of a country.
e.g.: The dollar is legal tender in the United States. A debtor can use dollars to pay any debts, and creditors must accept them for payment.
14. multinational (n.) - a company that conducts business in several countries and has a global philosophy of management.
e.g.: Many developing countries encourage multinational companies to build production facilities. Unilever is an important multinational corporation which produces and sells products in many countries.
15. parent company (n.) - a large company which owns smaller companies or subsidiaries.
e.g.: International Telephone and Telegraph (I.T.T.) is a parent company which owns many smaller companies in the United Stated and abroad.
16. protectionism (n.) - the enactment of laws regulating imports for the purpose of protecting domestic companies from foreign competition.
e.g.: Protectionism is a barrier to foreign trade.
17. quota (n.) - a limit or maximum number of items which the government will allow to be imported.
e.g.: The quota of immigrants for this year has already been filled.
18. subsidiary (n.) - a company owned by a parent company.
e.g.: Ford produces parts for its automobiles at several of its foreign subsidiaries.
19. subsidize (v.) - to assist a private company with government funds.
e.g.: In many countries the governments subsidize the farmers in order to insure that enough food is produced.
20. surplus (n.) - extra amount.
e.g.: A country that exports more than it imports will have the balance of trade surplus.
21. tariff(n.) - a tax on imports (or sometimes exports).
e.g.: The new tariffs will make the imported products more expensive for consumers.
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