Imports,+Exports+&+Trade

Important Terms for this Chapter
**Pure Competition:** a market situation with many sellers, each offering the same product. **Monopolistic Competition:** a market situation with many sellers, each with a slightly different product. **Oligopoly:** control of an industry by a few large companies **Monopoly:** a situation in which one seller controls the entire market for a product or service
 * Imports: ** services or products bought by a company or government from businesses in other countries.
 * Customs official ** : government employee authorized to collect the duties levied on imports.
 * Exports ** : products sold in other countries
 * Direct exporting: ** a company that actively seek and conducts exporting
 * Indirect exporting: ** the selling of a company's products in a foreign market without any special activity for that purpose.
 * Trade leads ** : lists for companies planning to do business overseas.
 * Balance of payments: ** total flow of money coming into a country minus the total flow going out
 * Bill of Lading ** : A document that states the agreement between the exporter and the transportation company.

‍Chapter Summary

 * Importing is important to business for meeting consumer demand, lowering operating costs, and obtaining production inputs.
 * The four steps of importing are: 1. determine demand, 2. contact suppliers, 3. finalize purchases, and 4. receive goods.
 * The five steps of the exporting process are: 1. find potential customers, 2. meet customer needs, 3. agree on sales terms, 4. provide products or services, 5. complete the transaction.
 * The exporting of services can be a significant percentage of a country's export activities.
 * A country's balance of payments measures the total flow of money coming into a courntry minus the total flow going out and may be positive or negative. a trade deficit is the total amount a country owes to other courntries as a result of importing more goods and services than are exported.
 * The main types of trade agreements are the World Trade Organization, economic communities, barter agreements, and free trade zones.
 * The comptetitive situation in a country is affected by 1. the number of companies, 2. business costs, and 3. product differences
 * The four main types of competitive markets are pure competition, monopolistic competition, oligopoly, and monopoly.