A trade deficit also occurs when companies manufacture in other countries. If the other components of the balance of payments are in a large enough surplus, it will offset a trade deficit.
Additional Business Flashcards. Total Cards 29.
The balance of trade is the most significant component of the balance of payments. Definition Buying products from another country. Term Foreign Subsidiary.
Customs and is intended to be sold in America, it is considered an import. Glossary Trade Policy.
Term Licensing. Definition A global strategy in which a firm the licensor allows a foreign company the licensee to produce its product in exchange for a fee a royalty. Glossary Trade Policy. Term Devaluation. By Kimberly Amadeo.
Worst of all, they trigger reactionary protectionism from the nation's trade partners. It defines U.
Create Account. Term Import Quota. The measurements of goods transactions come from the U. By Kimberly Amadeo. Definition A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.