- Nations are interdependent because most of them do not produce everything they need.
- International trade is the exchange of goods and services between nations. When a country imports (buys from other countries) more than it exports (sells to other countries), it has a negative balance of trade, which is also called a trade deficit. When the opposite is true, the country has a trade surplus.
- Three types of trade barriers are tariffs, quotas, and embargoes.
- Three significant trade agreements and alliances that foster free trade are the World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), and the European Union (EU).
- Businesses can get involved in international trade through importing, exporting, licensing, contract manufacturing, joint ventures, and foreign direct investments.
- A global environmental scan analyzes political, economic, socio-cultural, and technological factors. The factors that may affect international business include political stability, foreign laws, infrastructure, taxes, the standard of living, the currency exchange rate, language, etiquette, and the number of Internet users.
- Global marketing strategy options include globalization, adaptation, and customization of products and promotions.