By the end of the chapter, you should be able to:
- Explain why nations and companies participate in international trade and how they measure that trade.
- Describe the concepts of absolute and comparative advantage.
- Define importing and exporting.
- Explain how companies enter the international market through licensing agreements or franchises.
- Describe how companies reduce costs through contract manufacturing and outsourcing.
- Explain how cultural, economic, legal, and political differences between countries create challenges to successful business dealings.
- Discuss the various initiatives designed to reduce international trade barriers and promote free trade.
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