Explain the following terms

 Foreign direct investment

- Foreign Direct Investment (FDI) flows record the value of cross-border transactions
related to direct investment during a given period of time, usually a quarter or a year.

 International trade
- International trade is the purchase and sale of goods and services by companies in
different countries. Consumer goods, raw materials, food, and machinery all are
bought and sold in the international marketplace.

 Mercantilism
- Mercantilism is an economic practice by which governments used their economies to
augment state power at the expense of other countries. Governments sought to ensure
that exports exceeded imports and to accumulate wealth in the form of bullion
(mostly gold and silver)

 Trade deficit
- A trade deficit occurs when a country imports more than it exports. In other words,
when a country buys more than it sells, it has a trade deficit.
 Trade surplus
- A trade surplus is an economic measure of a positive balance of trade, where a
country's exports exceed its imports. It is the opposite of a trade deficit.

 Absolute advantage
- Absolute advantage is the ability of an individual, company, region, or country to
produce a greater quantity of a good or service with the same quantity of inputs per
unit of time, or to produce the same quantity of a good or service per unit of time
using a lesser quantity of inputs, than its competitors.

 Comparative advantage
- Comparative advantage is an economy's ability to produce a particular good or
service at a lower opportunity cost than its trading partners. Comparative advantage is
used to explain why companies, countries, or individuals can benefit from trade.
 Culture ?
- large power distance , individualist, high uncertainty avoidance

 Totalitarianism
- Totalitarianism is a form of government that attempts to assert total control over the
lives of its citizens. It is characterized by strong central rule that attempts to control
and direct all aspects of individual life through coercion and repression.
 Pluralism
- Pluralism (political theory), belief that there should be diverse and competing centres
of power in society. Legal pluralism, the existence of differing legal systems in a
population or area. Pluralist democracy, a political system with more than one center
of power.

 Democracy
 - democracy, it is noted that such a regime can modernize economies, improve social
conditions, and integrate into the international community. In addition, it does not
sponsor terrorism and war, and could be reliable and good partners in international
trade and business.
 Mixed economy
- A mixed economic system is a system that combines aspects of both capitalism and
socialism. A mixed economic system protects private property and allows a level of
economic freedom in the use of capital, but also allows for governments to interfere
in economic activities in order to achieve social aims.

 Centrally planned economy

- Centrally planned economies are also known as command economies, where the
prices are controlled by a centrally managed bureaucracy. The theory behind centrally
planned economy is that the government will take control of the means of production
and run the economy with fair distribution to all.

 Cultural literacy
- Cultural literacy means being able to understand the traditions, regular activities and
history of a group of people from a given culture.

 Cultural imperialism
- ultural imperialism, in anthropology, sociology, and ethics, the imposition by one
usually politically or economically dominant community of various aspects of its own
culture onto another nondominant community.

 Lingua Franca
- The exponential growth of the English language is undeniable. There are now
more non-native speakers of English than mother tongue speakers and it is
the fastest-spreading language in human history.

 Caste system
- Business operations in caste-affected countries are at a high risk of being based
on the economic exploitation or seclusion of caste-affected communities and others at
the “low” end of the caste hierarchy.

 Political motive – government intervention?

- Business operations in caste-affected countries are at a high risk of being based on the
economic exploitation or seclusion of caste-affected communities and others at the
“low” end of the caste hierarchy.

 Dumping
 Hoarding

 Subsidy

 Export tariff

 Import tariff

 Quota

 Stock

 Bonds

 Currency speculation

 Currency control