Term
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Definition
| "A monopoly that exists when a country is the only source of an item, |
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Term
| Asia-Pacific Economic Cooperation (APEC) |
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Definition
| The only producer of an item, or the most efficient producer of an item." |
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Term
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Definition
| An international trade alliance that promotes open trade and economic and technical cooperation among member nations. |
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Term
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Definition
| The difference between the flow of money into and out of a country. |
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Term
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Definition
| Payments, gifts, or special favors intended to influence the outcome of a decision. |
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Term
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Definition
| The condition in which a nation spends more than it takes in from taxes. |
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Term
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Definition
| Individuals or organizations that try to earn a profit by providing products that satisfy people’s needs." |
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Term
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Definition
| The principles and standards that determine acceptable conduct in business. |
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Term
| Capitalism (Free Enterprise) |
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Definition
| An economic system in which individuals own and operate the majority of businesses that provide goods and services. |
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Term
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Definition
| The difference in value between a nation’s exports and imports. |
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Term
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Definition
| Formalized rules and standards that describe what a company expects of its employees. |
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Term
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Definition
| First described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources. |
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Term
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Definition
| A group of firms or nations that agrees to act as a monopoly and not compete with each other to generate a competitive advantage in world markets. |
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Term
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Definition
| The rivalry among businesses for consumers’ dollars. |
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Term
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Definition
| The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers. |
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Term
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Definition
| The basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items. |
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Term
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Definition
| The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. |
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Term
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Definition
| The hiring of a foreign company to produce a specified volume of the initiating company’s product to specification; the final product carries the domestic firm’s name. |
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Term
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Definition
| The number of goods and services that consumers are willing to buy at different prices at a specific time. |
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Term
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Definition
| A condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced. |
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Term
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Definition
| Foreign trade agreements that involve bartering products for other products instead of for currency. |
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Term
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Definition
| The ownership of overseas facilities. |
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Term
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Definition
| A slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers. |
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Term
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Definition
| The situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment. |
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Term
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Definition
| A description of how a particular society distributes its resources to produce goods and services. |
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Term
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Definition
| The study of how resources are distributed for the production of goods and services within a social system. |
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Term
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Definition
| The act of a country or business selling products at less than what it costs to produce them. |
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Term
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Definition
| "An individual who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something." |
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Term
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Definition
| The price at which the number of products businesses are willing to supply equals the amount of products consumers are willing to buy at a specific point in time. |
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Term
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Definition
| An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. |
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Term
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Definition
| A prohibition on trade in a specific product. |
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Term
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Definition
| A union of European nations established in 1958 to promote trade among its members. |
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Term
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Definition
| Regulations that restrict the amount of currency that can be bought or sold in a nation. |
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Term
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Definition
| The ratio at which one nation’s currency can be exchanged for another nation’s currency. |
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Term
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Definition
| The funds used to acquire the natural and human resources needed to provide products; also called capital. |
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Term
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Definition
| The sale of goods and services to foreign markets. |
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Term
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Definition
| Pure capitalism, in which all economic decisions are made without government intervention. |
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
| A form of licensing in which a company—the franchiser—agrees to provide a franchisee a name, logo, methods of operation, advertising, products, and other elements associated with a franchiser’s business, in turn for a financial commitment and the agreement to conduct business in accordance with the franchiser’s standard of operations. |
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Term
Global Strategy
(Globalization) |
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Definition
| An international trade agreement that provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved. |
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Term
| Gross Domestic Product (GDP) |
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Definition
| The sum of all goods and services produced in a country during a year. |
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Term
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Definition
| The physical and mental abilities that people use to produce goods and services; also called labour. |
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Term
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Definition
| A strategy that involves standardizing products, and as much as possible, their promotion and distribution for the whole world, as if it were a single entity. |
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Term
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Definition
| A tax levied by a nation on goods imported into the country. |
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Term
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Definition
| A condition characterized by a continuing rise in prices. |
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Term
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Definition
| The purchase of goods and services from foreign sources. |
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Term
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Definition
| The physical facilities that support a country’s economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems. |
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Term
| International Monetary Fund (IMF) |
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Definition
| The buying, selling, and trading of goods and services across national boundaries. |
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Term
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Definition
| An organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation. |
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Term
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Definition
| The sharing of the costs and operation of a business between a foreign company and a local partner. |
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Term
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Definition
| Economies made up of elements from more than one economic system. |
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Term
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Definition
| The market structure that exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small. |
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Term
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Definition
| The market structure that exists when there is only one business providing a product in a given market. |
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Term
| Multinational Corporation |
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Definition
| A trade arrangement in which one company—the licensor—allows another company—the licensee—to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty. |
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Term
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Definition
| "A corporation that operates on a worldwide scale, without significant ties to any one nation or region." |
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Term
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Definition
| Land, forests, minerals, water, and other things that are not made by people. |
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Term
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Definition
| Organizations that may provide goods and services but do not have the fundamental purpose of earning profits. |
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
| A plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences. |
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Term
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Definition
| An agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the U.S., and Mexico. |
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Term
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Definition
| The market structure that exists when there are very few businesses selling a product. |
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Term
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Definition
| The relocation of business processes by a company or subsidiary to another country. Offshoring is different than outsourcing because the company retains control of the offshored processes. |
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Term
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Definition
| The act of taking someone else’s work and presenting it as your own without mentioning the source. |
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Term
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Definition
| A good or service with tangible and intangible characteristics that provide satisfaction and benefits. |
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Term
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Definition
| The difference between what it costs to make and sell a product and what a customer pays for it. |
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Term
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Definition
| The market structure that exists when there are many small businesses selling one standardized product. |
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Term
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Definition
| The transferring of manufacturing or other tasks to countries where labor and supplies are less expensive. |
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Term
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Definition
| A decline in production, employment, and income. |
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Term
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Definition
| A business’s obligation to maximize its positive impact and minimize its negative impact on society. |
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Term
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Definition
| An economic system in which the government owns and operates basic industries, but individuals own most businesses. |
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Term
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Definition
| Groups that have a stake in the success and outcomes of a business. |
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Term
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Definition
| A restriction on the number of units of a particular product that can be imported into a country. |
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Term
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Definition
| The number of products—goods or services—that businesses are willing to sell at different prices at a specific time. |
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Term
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Definition
| A partnership formed to create competitive advantage on a worldwide basis. |
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Term
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Definition
| A nation’s negative balance of trade, which exists when that country imports more products than it exports. |
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Term
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Definition
| The condition in which a percentage of the population wants to work but is unable to find jobs. |
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Term
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Definition
| The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies. |
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Term
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Definition
| A firm that buys goods in one country and sells them to buyers in another country. |
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Term
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Definition
| An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries. |
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