WHEELER/INTRO2BUSINESS
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Created by:
mrsthurlow on September 18, 2009
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27 terms
Terms | Definitions |
|---|---|
 Globalization | process by which the worlds various national economies and trading systems are fast becoming a single highly interdependent system |
| Export | domestically produced products sold in foreign markets |
| Imports | Foreign products sold in domestic markets |
| Major World Marketplaces | distinction based on wealth (high income countries, upper middle income countries, low middle income countries, developing countries) geographic clusters (north america, europe, pacific asia) |
| Significant Agreements and Treaties | NAFTA, EU, ASAN, GATT, WTO |
| Balance of Trade | total economic value of all the products that a country exports minus the economic value of all the products that it imports |
| Trade Surplus | a positive balance of trade that results when a country exports more than it imports |
| Trade Deficit | negative balance of trade that results when a country imports more than it exports |
| Balance of Payments | flow of money into or out of a country (*money that a country pays for its imports and recieves for export-its balance of trade-comprises much of its balance of payments |
| Exchange Rate | rate at which the country of one nation can be exchanged for that of another (*fixed exchange rates, floating exchange rates) |
| Echange Rates Impact Strong Global Trade | when a economy's currency is going strong, domestic companies find it harder to export, foreign find it more difficult to import, domestic companies may move production to cheaper production sites in foreign countries |
| Exchange Rates Impact Weak Global Trade | when the currenct is weak, easier to export, foreign companies, harder to |
| Absolute Advantages | when a country can produce something that is cheaper and/or of higher quality than any other country, an advantage based on possessing a scarce resource (eg oil) or favorable physical location |
| Comparative Advantage | when a country can produce goods more effecientlyor better than other countries can produce the same goods. advantage based on superior productivity (eg technologically advantaged manufacturing capability) |
| National Competitive Advantage | conditions favoring heavy involvement in international business: Factor conditions, demand conditions, related and supporting industries, strategies, structures and rivalries |
| International Business Management | gauging demand, adapting to customer needs, outsourcing, offshoring |
| Levels of International Involvement | exporters, importers, international firms, multinational firms |
| International Organizational Structures | independent agents (represents an exporter in foreign mrkt), licensing arrangements (rights given to mrkt products), branch offices (more direct control over agents), strategic alliance, (where a company wants to do business), foreign direct investment( buying os est tangable assets in another country) |
| Quotas | restrics the number or products of a certain type that can be imported, raising the price of those imports |
| Embargo | gov't order forbidding exportation and/or importation of a product or all products from a specific country |
| Tariffs | taxes on imported products |
| Subsidy | gov't payment to help to domestic business compete with foreign firms |
| Protectionism | practicing of protecting domestic business at the expense of free market competition |
| Local Content Laws | req's that products sold ina country be at least partly made there |
| Business Practice Laws | host countries goren business practices w/in their jurisdiction |
| Cartels | associations of producers that control supply and demand and prices |
| Dumping | selling a product abroad for less than the cost of production at home |
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