International Business Flashcards
3 ways a company may enter an international market
- manufacturing in other countries
- importing/exporting
- selling online
riskiest types of international business:
- joint
- merger
money market
investing in currency
capital market
investing in the stocks of companies
long term investment, riskier,
capital market
short term investment, low risk,
money market
2 general investment options
stocks & bonds
how does someone earn a return on investment?
Return on investment (ROI) is:
profit earned on an investment
_________________________
cost of investment
why would someone look at investing outside of canada?
- diversify and spread out investments, which is less risky
- greater rate of return
- emerging markets
why would someone decide not to invest outside of canada?
-risky, as capital markets are interconnected, so a major change can cause drastic loss, for example the 2008 USA stock market crash
the process of buying: equipment, capital goods, raw materials, services, etc, from around the world, this act improves quality and allows access to new technology.
global sourcing
this is essentially a form of transaction that takes place between a wholesaler - manufacturer - retailer. It refers to company relations, and ignores the consumer aspect to business.
B2B or Business to Business
The idea that a company will add money to the price of a product, for a consumer, because of the steps the product takes to meet the consumer: raw materials, processor, manufacturing, wholesaler, retailer, consumer.
value added
child labour in 3rd world countries, sweatshops, and unliveable wages allows companies to decrease value added to sell more of a product and pay employees and farmers less.
lack of value added
