Chapter 5
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
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