international business terms english 5
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46 terms
Terms | Definitions |
|---|---|
 Cultural literacy | Detailed knowledge of a culture that enables a person to function effectively within it |
| Ethnocentricity | Belief that one's own ethnic group or culture is superior to that of others |
| Social Mobility | Ease of moving up or down a culture's "social ladder" |
| Aesthetics | the study of the mind and emotions in relation to the sense of beauty (music, paintings, theatre, ect.) |
| class system | A form of social stratification based primarily on the possession of money or material possessions |
| caste system | a social structure in which classes are determined by heredity |
| Individualism | the pursuit of individual rather than common or collective interests |
| Totalitarianism | Every aspect of peoples lives must be controlled to preserve order. -Leaders govern without peoples support -Leaders control others live and do not tolerate opposing viewpoints |
| Democracy | government by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system. UNITED STATES -Freedom of expression -Periodic elections |
| Communism | a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. |
| Mixed economy | Mixed economy Government and private parties share ownership of land, factories, and other economic resources rather evenly |
| Market economy | Private parties (individuals or businesses) own vast majority of land, factories, and other economic resources |
| Centrally planned economy | Government ownership of economic resources and state planning -Government owns most land, factories, and other economic resources and plans nearly all economic activity |
| Free Enterprise | Firms decide which products to sell and which markets to enter. |
| Price Flexibility | Most prices follow the forces/laws of supply and demand |
| Free Choice | Consumers choose freely from alternative purchase options |
| Gross Domestic Product (GDP) | the value of goods and services that a nation produces during a one-year period |
| Gross National Product (GNP) | GDP + International Product |
| Comparative Advantage | the ability of an individual or group to carry out an economic activity, such as production, at a lower cost and more efficiently than another entity |
| Confiscation | Forced transfer of assets from a company to the government without compensation |
| Globalization | the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications |
| Expropriation | Forced transfer of assets from a company to the government with compensation -Ex. Taking over someone's personal property to build a school |
| Nationalization | Forced asset transfer to the government of an entire industry |
| Tariffs | Government tax levied on a product as it enters or leaves a nation |
| Subsidies | Financial assistance in the form of cash, tax breaks, price supports, etc. |
| Quotas | the share or proportional part of a total that is required from, or is due or belongs to, a particular district, state, person, group, etc. |
| Foreign Direct Investment (FDI) | Purchase of physical assets or significant amount of ownership of a company in another country to gain some measure of management control. |
| Mercantilism | Nations accumulate financial wealth by encouraging exports and discouraging imports |
| Market Power | A firm undertakes FDI to establish a dominant presence in an industry -Market Power = Greater Profits |
| North American Free Trade Agreement (NAFTA) | Free Trade among the United States, Canada, and Mexico. |
| The Free Trade Area of the Americas (FTAA) | Not yet put in place due to protests, but would create largest Union in the world with 34 countries ranging from the tip of Alaska to the Southern tip of the Tierra del Fuego in South America. |
| Conversion | To facilitate sale or purchase, or invest directly abroad |
| Speculation | Sequential purchase and sale (or vice-versa) of a currency for profit |
| Exchange Rates | STRATEGY: Set of planned actions that managers take to help a company meet its objectives |
| Global Strategy | Offering the same products using the same marketing strategy in all national markets |
| Growth Strategy | Increase the scale (size of activities) or scope (kinds of activities) of operations |
| Differentiation Strategy | Design products to be perceived as unique by buyers throughout an industry |
| Stability Strategy | Guard against change and avoid growth or retrenchment |
| Low-Cost Leadership Strategy | Exploit economies of scale to have the lowest cost structure of any competitor in an industry |
| Letter of Credit | Importer's bank issues a document stating that the bank will pay the exporter when exporter fulfills document's terms |
| Joint Venture | Separate company created and jointly owned by two or more independent entities to achieve a common business objective |
| Strategic Alliance | Entities cooperate (but do not form a separate company) to achieve strategic goals of each |
| Wholly Owned Subsidiary | Facility entirely owned and controlled by a single parent company |
| Intensive Channel | Many Resellers |
| Exclusive Channel | One/Few Resellers |
| ISO 9000 | (International Organization for Standardization) It deals with fundaments of Quality Management Systems |
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