【正文】 he MNE. If the MNC is established as a result of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate MNC. (4) World Company: The national identities of world panies are blurred to a large extent. They will be great movers of economic globalization. When such panies bee dominating, the possibility of conflicts among sovereign states may be greatly reduced. (1) International trade: It can de defined as the exchange of goods and services produced in one country with those (2) Customs Union: It is the second form of regional economic integration. It goes a step further by adopting the same trade policy for all the members toward countries outside their organization in addition to abolishing trade barriers among themselves. Since imports from other countries are subject to the same tariff no matter which member they export to , it is impossible for nonmembers to get into the market of the customs union in a detour as they possibly do in the case of trade with a free trade area. labour owned by the residents of an economy. (2) GDP: (Gross Domestic Product) GDP measures the market value of all goods and services produced within the geographic area of an economy. It has been preferred by most countries since the 1990s. (3) Per capital GDP: It reveals the average ine level of consumers, which is important when marketing consumer durables. (4) OECD: It stands for the organization for Economic Cooperation and Development. It was established in 1961, by major capitalist nations with its headquarters in Paris. Its 29 members mostly of highine countries. And only 6 are middleine economies. The organization exists to promote economic cooperation development between this countries and between this developed countries and the developing countries. (5) PPP: It stands for Purchasing Power Parity, in Chinese it means “購買力平價(jià)”. (6) Triad: The term triad refers to the three richest regions of the world the United States. The European Union and Japan that offer the most important business opportunities. (1) Free Trade Area: It is the first and loosest form of regional economic integration. Members of free trade area removes barriers to the flow of goods and services among themselves while each member still adopts its own policy as regards to trade with outsiders. The most notable free trade area is the North American Free Trade Agreement (NAFTA), the largest free market formed by the United States, Canada and Mexico in 1991 with over 360 million consumers and a total GDP of more than 6 trillion US dollars.another within a particular period for a flat payment of a percentage of the relevant business volume. (7) International turnkey project: a firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon pletion. Projects are often large and plex and take a long period to plete. (1) GNP: (Gross National Product) GNP refers to the market value of goods and services produced by the property and(1) International business: it refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import and export. (2) Commodity trade: exporting and importing goods produced or manufactured in one country for consumption or resale in another. (3) Licensing: in licensing, a firm leases the right to use its intellectual property to a firm in another country. Such intellectual property may be trademarks, brand names, patents, copyrights or technology. (4) Franchising: it can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee, is allowed to operate in the name of another, called the franchiser who provides the former with trademarks, brand names, logos, and operating techniques for royalty. (5) Franchiser: it can be develop internationally and gain access to useful information about the local market with little risk and cost, and the franchisee can easily get into a business with established products or services. (6) Management contract: Under a management contract, one pany offers managerial or other specialized services to (3) The Common Market: It is the further up the scale of regional economic integration. Besides free movement of goods and services and adoption of mon external trade policy, factors of production such as labor, capital and technology are free to move among members so that they can be utilized in a more efficient and productive way. (4) The Economic Union: It is the highest form of economic integration. It is characterized by integration of the domestic policies of its members in respect of economy, finance etc. in addition to absence of trade barriers, practice of mon external policy and free production factor mobility. (5) APEC: It refers to Asia Pacific Economic Cooperation, set up at the Ministerial Meeting in Australia. It has a fivelayer organizational structure. It was not exactly on organization but the official forum. In 1991, China joined APEC as a sovereign state. Its tenet and objects are interdependence mutual benefits, adopting an open and multilateral trading system and reducing trade barriers. produced in another. (2) International specialization: It can de defined as that one country producing more of a modity than it uses itself and selling the remainder to other counties. Such specialization constitutes an important basis for international trade. (3) Absolute advantage: It holds that a modity will be produced in the country where it costs least in terms of resources (capital, land, and labour). (4) Comparative advantage: It holds that even if a country is less efficient than another in the production of both modities, . it has absolute disadvantage in producing both modities, there is still a basis for mutually benefi