Exam Review Flashcards

1
Q

International Business

A

Countries are dependent on each other to produce certain goods

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2
Q

Global Dependency

A

When items that consumers need and want are created in other countries. Ex. Drought and crops in Africa

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3
Q

Trade Barriers

A

Restrictions that reduce free trade among countries

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4
Q

Gross Domestic Product (GDP)

A

measures the output of goods that a country produces within its borders. It includes items produced with foreign resources

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5
Q

Gross National Product (GNP)

A

measures the total value of all goods and services produced by the resources of a country

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6
Q

Balance of Trade

A

is the difference between a country’s exports and imports. A trade surplus occurs when a nation exports more than it imports. Trade deficit is vice versa

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7
Q

Absolute Advantage

A

exists when a country can produce a good or service at a lower cost than other countries. Ex. Saudi has absolute advantage in oil

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8
Q

Comparative Advantage

A

A country specializes in the production of a good or service at which it is relatively more efficient

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9
Q

Economic System

A

is the method a country uses to answer the basic economic questions

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10
Q

Command Economy

A

the government or a central - planning committee regulates the amount, distribution, and price of everything produced. The government also owns the productive resources of that country

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11
Q

Market Economies

A

are those in which individual companies and consumers make the decision about what, how, and for whom items will be produced. It is also called capitalism

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12
Q

Private property

A

Individuals have the right to buy and sell productive re-sources and to own business enterprises

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13
Q

Profit motive

A

Individuals are inspired by the opportunity to be rewarding for taking business risks and for working hard

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14
Q

Free, competitive marketplace

A

Consumers have the power to use their choices to determine what is to be produced and to influence the prices to be changed

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15
Q

Mixed Economy

A

Economies are a blend between government involvement in business and private ownership

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16
Q

Privatization

A

The process of changing an industry from publicly to private

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17
Q

World Bank

A

is a bank whose major function is to provide economic assistance to less developed countries

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18
Q

International Monetary Fund (IMF)

A

is an agency that helps promote economic cooperation by maintain an orderly system of world trade and exchange rates

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19
Q

WTO (World Trade Organization)

A

Helps form relations and trade agreements with other nations

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20
Q

Trade Surplus

A

Occurs when a country exports more than it imports

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21
Q

Trade Deficit

A

Occurs when a country imports more than it exports

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22
Q

Monopoly

A

One seller controls the entire market for a product or service

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23
Q

Oligopoly

A

Has few sellers with slightly different product like car tires

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24
Q

What is the economy?

A

It is the means by which people organize the production of needed goods and services using the resources they have available

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25
Q

Demand

A

Two criteria must exist for there to be a demand for a product. Desire/want for the product/sense, Ability to pay

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26
Q

Supply

A

Is the amount businesses are willing to supply at different prices

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27
Q

Law of Demand

A

Price (up)-Demand (down), Price (Down)-Demand (up)

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28
Q

Law of Supply

A

Price (up) - Supply (up), Price (down) - Supply (down)

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29
Q

What is the economic problem ?

A

Scarcity vs. Unlimited wants and needs

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30
Q

What does scarcity mean?

A

The definition of scarcity in economics is the situation where limited resources cannot satisfy unlimited wants. What to produce?, How to produce it?, For whom to produce it?

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31
Q

Opportunity Cost

A

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action

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32
Q

Market Price

A

The point at which demand and supply cross

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33
Q

Equilibrium price

A

is when there is no inflation on a sale

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34
Q

Industrialized Country

A

a country with strong business activity that is usually the result of advanced technology and a highly educated population

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35
Q

Infrastructure

A

refers to a nation’s transport, communication, and utility systems

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36
Q

Less-Developed Country (LDC)

A

a country with little economic wealth and an emphasis on agriculture or mining. Sometimes these countries have abundant resources but no technology to make use of them

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37
Q

Developing Countries

A

They are evolving from less developed to industrialized . They are also known as emerging markets

38
Q

Culture

A

is a system learned, shared, unifying, and interrelated beliefs, values, and assumptions

39
Q

Subculture

A

is a subset of a larger culture. It may have some values, beliefs, and assumptions that are different than the larger culture of which it is a part

40
Q

Cultural Baggage

A

is the idea that you can carry your beliefs, values, and assumptions with you at all times

41
Q

Nuclear family

A

is a group that consists of a parent or parents and unmarried children living together. Developed countries use this

42
Q

Extended family

A

is a group that consists of the parents, children and other relatives living together. Developing countries use this.

43
Q

family unit

A

provides the early education for its younger members

44
Q

Low-context culture

A

is one that communicates very directly, they interpret things literally

45
Q

High-context culture

A

is one that communicates indirectly, they attach little value to the literal meanings and interpret data figuratively

46
Q

Non verbal communication

A

is communication that does not allow the use of words

47
Q

Individualism

A

is the belief in the individual and his or her ability to function relatively independently

48
Q

Collectivism

A

is the belief that the group is more important than the individual

49
Q

Ethnocentrism

A

is the belief that one’s culture is better than other cultures

50
Q

Culture Shock

A

is a normal reaction to all the differences of another culture

51
Q

Reverse Culture Shock

A

is your reaction to becoming reacquainted with your own culture after having accepted another culture

52
Q

Social Responsibility

A

the process whereby people function as good citizens and are sensitive to their surroundings. To have the right to operate within a host country, a multinational enterprise must substantially benefit the host country

53
Q

Expropriation

A

occurs when a government takes control and ownership of foreign-owned assets and companies

54
Q

Economic Nationalism

A

refers to the trend of some countries to restrict foreign ownership of companies and to establish laws that protect against foreign imports

55
Q

Sales Tax

A

a tax on the sale of a product, the consumer pays on the time of purchase

56
Q

Excise Tax

A

a tax levied on the sale or consumption of specific products or commodities. It helps pay for upkeep on those products

57
Q

Value Added Tax

A

a tax assessed on the increase in value of goods from each stage of production to final consumption

58
Q

Soft Currency

A

A currency that is not easy to change to other currency

59
Q

Hard Currency

A

is a monetary unit that is freely converted into another currency

60
Q

Floating Exchange Rate

A

is a system in which currency values are based in supply and demand

61
Q

Foreign Exchange

A

The process of converting the currency of one country into the currency of another country

62
Q

3 Main Purposes of Money

A

Medium Exchange, Measure of Value, Store of Value

63
Q

Medium Exchange

A

Money is useful only if people are willing to accept it in exchange for goods and services

64
Q

Measure of Value

A

Money allows to put a value on various goods and services

65
Q

Store of Value

A

Money can be saved for future spending

66
Q

Exchange Rate

A

is the amount of currency of one country that can be traded for one unit of the currency of another country

67
Q

Migrant Workers

A

People who move to another country for work. Their decisions are influenced by Need, Attractiveness and Accessibility

68
Q

Labour Union

A

An organization of workers whose goal is improving members working conditions, wages and benefits. There has to be strength in numbers in order for this to work

69
Q

Collective Bargaining

A

is negotiation between union workers and their employees on issues of wages, benefits, and working conditions. Managers do not have bargaining rights

70
Q

Grievance Procedure

A

is the steps that must be followed to resolve a complaint by an employee, the union, or the employer

71
Q

Strike

A

Occurs when employees refuse to work to force an employer to agree to certain demands

72
Q

Lockout

A

Locking employees out of the workplace to force a union to agree to certain demands

73
Q

International Marketing

A

Marketing activities among sellers and buyers in different countries

74
Q

Market

A

The likely customers for a good or service in a certain geographic location

75
Q

Consumer Market

A

Individuals and households who are the final users of goods and services

76
Q

Organizational Market

A

Buyers who purchase items for resale or additional production

77
Q

Marketing Mix

A

There are 4 factors. Product, price, distribution, promotion

78
Q

Product

A

Refers to goods or services being offered for sale that satisfies consumer demand.

79
Q

Price

A

The monetary value of a product agreed upon a buyer and a seller

80
Q

Distribution

A

Involves the activities needed to physically move and transfer ownership of goods and services from producer to consumer

81
Q

Promotion

A

Involves the marketing efforts that inform and persuade customers

82
Q

Marketing Environment

A

All business activities are affected by four elements. Geography, Economic conditions, Social and cultural Influences and Political and Legal factors

83
Q

Geography

A

Climate and terrain can affect the types of products sold and transportation methods used in another country

84
Q

Economic Conditions

A

The value of a country’s currency usually affects the selling price, consumer demand, and profits on a product

85
Q

Social and Cultural Influences

A

Tastes, Habits, Customs, and religious beliefs must be considered

86
Q

Political and Legal Factors

A

Local political and legal factors also affect marketing decisions

87
Q

Target Market

A

is the particular market segment that a company plans to serve

88
Q

Quantitative Research

A

Large-scale surveys that collect numeric data used to study consumers

89
Q

Qualitative Research

A

Using open-ended interview questions to obtain comments from consumers about their attitudes and behaviours

90
Q

Product Line

A

An assortment of closely related products designed to meet the varied needs of target customers

91
Q

Product Life Cycle

A

The stages that a product goes through from start to finish