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Global Economy

Terms in this set (44)

global business
business which operates internationally
Specialization
when a business creates the efficient production of a specific product or service
Comparative Advantage
when a company sells goods and services at a lower price than its competitors
and still gains larger profits
Portfolio Investment
investor purchases part of a company through stocks; no real control of
company
Direct Investment
investor purchases large part of a company; has direct control of company
Foreign Exchange
exchange of one currency for another; conversion of one currency into another
Inflation
rate at which the level of prices for goods and services are rising and
purchasing is falling
Interest Rate
amount charged by a lender to a borrower for the use of their money
Deficit
when a country is spending more on foreign trade than it is earning
Public Debt
debt owed by a government
Terms of Trade
export prices versus import prices
Political Stability
investors look to support stable countries with strong economic performance
Economic Integration
different countries or regions agree to reduce or eliminate trade barriers and
coordinate monetary and fiscal policies
Free Trade
tariffs between member countries are eliminated or reduced
Custom Union
tariffs between member countries are predetermined and applied to other
countries
Common Market
member countries are free to move factors of production within other member
countries
Economic Union
monetary and fiscal policies between member countries are coordinated by
political integration
Political Union
authority of one or more member countries is significantly reduced and a
common, united government is put in place
Imports
goods or services brought into one country from another
Indirect Importing
foreign goods and services are shipped into another country and received by a
distributor, then sold to the consumer
Direct Imports
foreign goods and services are shipped into another country and received by
the consumer without going through a middle man
Exports
goods or services which are produced in one country and are shipped to
another country for sale or trade
Indirect Exporting
goods are exported from a company through a third party company
Direct Exporting
company or manufacturer is more involved with the exporting process
Balance of Trade
difference between a country's imports and exports
Foreign Trade
economic transactions between countries or other foreign entities
Foreign Investment
flow of capital from one nation to another in exchange for significant ownership
stakes in domestic companies or other domestic assets
Fair Trade
type of trade movement which focuses on the improvement of trading
circumstances
Free Trade
unconstrained purchase and sale of goods and services between countries
without tariffs, duties or quotas
Employability
set of achievements which make a person more appealing to a potential
employer
Studying Abroad
act of a student pursuing educational opportunities abroad
Global Linkage
ability to compete and participate on the global market
Licensing
agreement where one company, the licensor, makes an asset available to
another company, the licensee, in exchange for some form of compensation
Export Management Companies
independent firms which act as export sales departments for non-competing
manufacturers
Intellectual Property Rights
rights given to persons over the creations of their minds
Global Copyright
type of international law which protects the rights of creators or copyrighted
works around the world
Moral Rights
ideas that a copyrighted work is the expression of the personality of its author
or creator
Economic Rights
rights of the creator to authorize use of, or to prohibit the use of a work and to
set the conditions for its use
Trademark
brand name used to identify and distinguish the goods or services of one seller
from those of others and to indicate the source of the goods/services
Global Logistics
transport, handling and storage of funds, goods and information outside and
inside the production process
Global Job Market
global market in which employers across the world may search for potential
employees in foreign countries and vice versa
Multinational Company
company which has its facilities and other assets in at least one country other
than its home country
Employability
achievements which make a person more appealing to a potential employer
Bilingualism
ability to speak two or more languages
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