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B review 1
Into to Business flashcards chapter 1 - 3
102
Business
Undergraduate 1
01/27/2019

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Term
An entity that seeks to earn a profit by providing a good or service
Definition
Term
Quality of life
Definition
A measure of the general well being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment.
Term
Standard of living
Definition
The amount of goods and services people can buy with the money they have.
Term
Their income and the prices of the goods and services they buy
Definition
Standard of living for a nation depends on?
Term
Factors of production
Definition

The resources that contribute to the creation of wealth are known as

Term

As a factor of production, the term capital

Definition

includes tools, machinery, and buildings

Term

 entrepreneurship and knowledge.

Definition

Two factors of production that seem to contribute the most to a nation's ability to create wealth

Term

The business environment

Definition

 the external and internal circumstances that surround the business.

Term

land, labor, capital, entrepreneurship, and knowledge

Definition

five major categories of factors of production

Term

economic and legal environment of business

Definition

Taxes and government regulations are what environments of business

Term

 minimize interference with the free exchange of goods and services.

Definition

In order to create more wealth and provide better services, some nations recognize that a good strategy is to

Term

businesses are government owned

Definition

there is less incentive to work In countries where 

Term

 their efficiency and productivity.

 

Definition

Employers provide tools and technology for their employees in order to improve

Term
efficiency
Definition

producing goods and services using the least amount of resources.

Term
effectiveness
Definition

producing the desired result.

Term
b2b and b2c
Definition

two main types of e-commerce are

Term

 database.

Definition

An electronic storage file where firms keep customer information is known

Term

 providing quality products and services at competitive prices.

 

Definition

In today's competitive environment, good value mean

Term

Empowerment

Definition

giving employees the authority to make decisions.

Term

 demographics.

Definition

The statistical study of human population to learn its size, density, and characteristics

Term

 Diversity

Definition

means dealing sensitively with workers and cultures around the world.

Term
population shifts
Definition

due to what, businesses that cater to older consumers will see higher growth.

 

Term
global enviroment
Definition

 is far reaching and affects all the other business environments.

 

Term
increase global competition
Definition
An increase in global trade will
Term
Globalization
Definition
has greatly improved living standards around the world
Term
Greening
Definition

finding ways to save energy and lessen the harm on our environment.

Term

it is costly to governments who increase taxes to pay for added protection

Definition

 

The threat of terrorism is costly to most firms because 

Term

 an agrarian economy to a manufacturing economy to a service-oriented economy.

Definition

Since the 1800s, the U.S. has evolved from

Term
manufacturing industry
Definition

Businesses that produce and sell tangible products such as steel and machines are part of what industry  

Term
service industry
Definition

Health care, insurance, recreation, and other intangible products are provided by what industry?

Term
the service sector
Definition

In recent years, almost all new job creation in the U.S. has occurred in

Term
the information based sector
Definition

The new era of business is likely to be dominated by what sector?

Term

Economics 

Definition

the study of how a society employs its limited resources to produce goods and services and how it distributes them among competing groups and individual

Term

Macroeconomics

Definition

 studies the operation of a nation's economy as a whole.

Term

Microeconomics

Definition

studies the behavior of individual people and organizations in specific markets

Term

Resource development

Definition

 the study of how to increase the amount of available resources and create conditions that will make better use of these resources.

Term
better education
Definition

A key to economic growth and development is to provide people with

Term
the father of modern economics
Definition

Adam Smith is considered by some to be

Term
individual freedom is necessary if a society is to prosper
Definition

 an important premise of Adam Smith's conclusions about economic prosperity

Term

 in order to earn money and produce goods that improve lives, self-directed gain would provide jobs, and subsequently wages for others

Definition

This is the reason people working in their own self-interest produce goods, services, and wealth for other

Term
capitalism
Definition

 the name of a free-market economic system in which most of the factors of production and distribution -- such as land, factories, railroads, and stores -- are owned by individuals.

Term
the right to own private property
Definition

The freedom for people to buy, sell, and use land, buildings, machinery, and inventions are basic capitalist rights under

Term
freedom of choice
Definition

The freedom of people to decide where they want to work and live, and what they want to buy or sell are basic capitalist rights under

Term
free market
Definition

a market in which decisions about what to produce and in what quantities are made by the market.

Term
price
Definition

In a free-market economic system, ______ is the key determinant used to signal to producers what to produce and how much to produce.

Term
supply of that product or service
Definition

The quantity of a good or service that producers are willing to sell at different prices during a specific time period is known a

Term

A simple supply curve

Definition

shows a relationship between the price of a good and the quantity of that good sellers are willing to offer for sale at a specific point in time.

Term

A demand curve

Definition

shows the relationship between the price of a good and the quantity of that good people are willing and able to buy in a given time period.

Term

 equilibrium price of the good.

Definition

When the supply curve and demand curve for a particular good are shown together on a single graph, the point at which the two curves intersect identifies the

Term
perfect competition
Definition

 is the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

Term
better quality and lower prices
Definition

The presence of competition in free markets usually results in 

Term
command economies
Definition

Both socialism and communism are variations of

Term
command economic system
Definition

 characterized by reliance on the government to determine what is produced and who gets the output.

 

Term
economic progress
Definition

The U.S. economic system relies on key economic indicators such as GDP, to measure

Term
gross domestic product
Definition

The total value of final goods and services produced within a nation's borders in a given year is known as that nation'

Term
gross domestic product
Definition

The total value of final goods and services produced within a nation's borders in a given year is known as that nation'

Term
unemployment rate, the price indices, the gross domestic product
Definition

Three important economic indicators of the United States are the 

Term
frictional,structural,seasonal,and cyclical
Definition
four basic type of unemployment
Term
consumer price index
Definition

 a statistic used to measure the pace of inflation or deflation.

Term
producer price index
Definition

The measure used to report price changes at the wholesale level 

Term
inflation
Definition

 refers to a general rise in the price level of goods and services over time

Term
deflation
Definition

 condition in which the average level of prices is actually falling

Term
depression
Definition

 a severe recession that is usually accompanied by deflation

Term
fiscal policy
Definition

 involves increases or decreases in government spending and taxes.

Term
national deficit
Definition

When the federal government's collection of tax revenues is less than what it spends in a given year, it results in a

Term
national debt
Definition

When the government runs a continual budget deficit, it increases the

Term
 Federal Reserve Bank
Definition

In the U.S., the ____________________ has the role of managing the money supply and interest rates.

Term
 monetary policy.
Definition

Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as

Term
semi-private organization
Definition

The Federal Reserve Bank operates as a ____________ not under the direct control of the government.

Term

Keynesian economic theory 

Definition

 suggests short-term increases in government spending to stimulate the economy.

Term
China and Germany
Definition

In volume of exports, the two leading nations are 

Term
comparative advantage
Definition

A nation has a ______________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

 

Term
 no nation can produce all the products its people want and need.
Definition

The theory of comparative advantage exists because

Term
Free trade
Definition

_______ _______ between nations generally results in mutually beneficial exchange relationships.

Term
A free-trade agreement
Definition

 is likely to result in an increase in imported goods and services.

Term
The balance of trade
Definition

 is the total value of a nation's exports compared to its imports measured over a specific period of time.

Term
dumping
Definition

  the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country

Term
licensing
Definition

Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called 

Term
royalty
Definition

The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called a 

Term

very little cost to the licensor.

Definition

A major advantage of licensing is

Term

the licensee may decide to use the expertise you have developed, break the agreement, and begin producing the product on his/her own

Definition

A disadvantage of licensing is

Term
 Export Assistance Centers 
Definition

 help small and medium-sized businesses get involved in exporting

Term
Franchising 
Definition

 an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner.

Term
A joint venture
Definition

 is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project.

Term
A strategic alliance
Definition

 represents a long-term partnership between two or more companies established to help each firm build competitive market advantages, without sharing the cost of risk.

Term
is a foreign subsidiary.
Definition

A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service, 

Term
floating exchange rates, 
Definition

Global financial markets operate under a system of ________ ________ ___ where the supply and demand for various currencies will determine their value at any moment in time

Term
the currency's supply and demand in the global market.
Definition

Under the floating exchange rate system, the value of a country's currency is determined by 

Term
 Foreign Corrupt Practices Act.
Definition

In some countries it is customary to pay government officials to secure necessary business contracts and permits. American businesses must follow U.S. law and cannot make these payments according to the

 

Term
Trade protectionism
Definition

 is the use of government regulations to limit the import of goods and services.

 

Term
Mercantilism 
Definition

was a seventeenth- and eighteenth-century belief that a nation should try to sell more goods to other nations than it buys from them.

Term
revenue and protective.
Definition

The two basic types of tariffs are 

Term
 protective
Definition

A________ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.

Term
import quotas.
Definition

In an effort to protect domestic jobs, some countries will place a limit on the number of certain types of products that can be imported. These limits are called 

Term
nontariff barriers.
Definition

Some governments initiate restrictive standards that detail exactly how a product must be sold in a country. Trade experts call these restrictions 

Term
facilitate global trade
Definition

The purpose of the General Agreement on Tariffs and Trade (GATT) is to .

Term
The World Trade Organization
Definition

 represents the first attempt to establish a truly global mediation center to resolve international trade disputes.

Term
The European Union
Definition

 created a single monetary unit to replace the national currencies of 12 member nations. This common currency is known as the euro.

Term
 promote conditions of fair competition for the three trading partners.
Definition

One objective of NAFTA is to 

Term
second wave
Definition

The __________ ____________ of offshore outsourcing refers to moving skilled service jobs such as those in accounting offshore.

 

Term
offshore outsourcing.
Definition

When U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States, we refer to this as 

Term
efficiencies
Definition

Companies can create __________ by hiring low-wage employees.is an advantage of offshore outsourcing?

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