Chapter 5 INTERNATIONAL AGREEMENTS, ORGANIZATIONS, AND POLICIES Important Terms 1. Agreement on International Trade (AIT) An arrangement among Canadian governments intended to harmonize relations and standards among provinces 2. Asia-Pacific Economic Cooperation (APEC) A forum for officials of countries bordering on the Pacific Ocean to promote trade among their countries 3. Bilateral Trade Trade between two countries 4. Ethnocentric Evaluation or view of others compared only to one's own criteria or values 5. European Union (EU) Political and economic alliance of 15 European countries that have eliminated trade barriers among them 6. Franchise A type of business in which a company authorizes a group or an individual to sell its goods and services for a period of time in a particular territory or location, and under contractual arrangements, usually involving a fee and a percentage of revenue or profits 7. Free Trade Area of the Americas (FTAA) Proposed integration of economies of the Western hemisphere into a single free trade zone 8. Free-trade zones Area where international trade without the imposition of tariffs or other trade barriers to the movement of goods and services 9. G-20 An international forum of finance ministers and central bank governors from 19 countries, the European Union, the International Monetary Fund, and the World Bank 10. Geocentric Viewed from the perspective of a particular geographic location or area 11. Globalization The growth and spread of interactive international economies and businesses around the world 12. International Chamber of Commerce (ICC) A world business organization that promotes an open international trade and investment system and market economy 13. International Monetary Fund (IMF) A multigovernment organization that focuses on international monetary cooperation and stability in foreign exchange 14. Multilateral Trade Trade among more than two nations 15. Multinational Company (MNC) (transnational company) A business enterprise that conducts business in several countries 16. North American Free Trade Agreement (NAFTA) An arrangement among Canada, the United States, and Mexico that has the goal of creating a free-trade zone among the three countries 17. Organization for Economic Cooperation and Development (OECD) A monitoring agency that offers governments a setting in which to discuss and develop economic and social policy 18. Polycentric Viewed from the perspective of a many countries or many companies 19. Strategic Alliance Two or more businesses cooperating to co-develop, co-produce, and/or co-market their products 20. Trading Bloc A group of countries that agree to open their markets to cross-border trade and business development 21. World Economic Forum (WEF) An independent, not-for-profit organization committed to raising the level of corporate citizenship in member countries