INTRO Flashcards
refers to any firm engaged in both International trade and investment
INTERNATIONAL BUSINESS
occurs when firms export and import goods and services to and from countries other than their countries
INTERNATIONAL TRADE
happens when domestic companies purchase goods abroad and bring them to a domestic country for sale
IMPORT
happens when the domestic companies sell their products or services abroad
EXPORT
when export activities are higher than import activities
TRADE SURPLUS
when import activities are higher than export activities
TRADE DEFICIT
allows unrestricted export and import of goods from one country to other countries
FREE TRADE
fairly exchanging of goods and services between countries with the aim of offering better trading conditions
FAIR TRADE
practice of hiring or contracting services of another company (domestically or internationally) to perform part of the business operations
OUTSOURCING
practice of hiring or contracting services of another company abroad to perform part of the firm’s business operations
OFFSHORING
practice of hiring or contracting services of another company within the firm’s home country
ONSHORING
practice of offshoring to nearby countries
Nearshoring
practice of offshoring to far away countries
FARSHORING
is the body of knowledge that answers questions about the development and implementation of good business strategies
STRATEGIC MANAGEMENT
the central, integrated and externally oriented concept of how an organization will achieve its performance objectives
STRATEGY
tool that helps a firm assess its internal characteristics and external environment
SWOT ANALYSIS
recognition of opportunities (needs, wants, problems, challenges) and creating and developing products to take advantage of those opportunities
ENTREPRENEURSHIP
person engaged in entrepreneurial activities
ENTREPRENEUR
a form of entrepreneurship that takes place inside a business that is already in existence
INTRAPRENEURSHIP
an employee of a firm who utilizes entrepreneurial skills to create and develop innovative products for the firm; they don’t bear the risks associated with the newly developed products
INTRAPRENEUR
are individuals or organizations whose interests may be affected as the result of what another individual or organization does
STAKEHOLDERS
technique used to identify and assess the importance of key people, groups of people, or institutions that may significantly influence the success of an activity, project or business
STAKEHOLDER ANALYSIS
Who are the Stakeholders for an International Business?
Government of the country
Industry Associations
Suppliers
Labor
Customers
Consumers
organization engaged in commerce with the aim of achieving a profit
BUSINESS
What are the THREE-PART MISSION STATEMENTS OF THE BUSINESSES?
- Social and environmental mission
- Product Mission
- Economic Mission
TRIPLE BOTTOM LINE
Profit, People, Planet
buys products and services that are sourced form other countries
IMPORTER
a person who sells products and services in foreign countries that are sourced from its home country
EXPORTER
investing assets directly into a foreign country’s buildings, equipment or organizations
FOREIGN DIRECT INVESTMENT (FDI)
means better access to raw materials, less costly labor, key suppliers, key customers, energy and natural resources
LOCATION ADVANTAGE
OTHER FORMS OF INT’L BUSINESS
Government
Non-Government Organizations
term used to describe the way countries are becoming more interconnected both economically and culturally
GLOBALIZATION
main economic expression of globalization
INTERNATIONAL TRADE
movement of goods from one geographic region to another
FOREIGN TRADE
Why is there globalization?
*Declining Trade and Investment Barriers
*Development of New Technologies
Role of Technological Change
*The Internet and the World Wide Web
*Transportation Technology
merging historically distinct and separate national markets into one huge global marketplace making it easier to sell internationally
Globalization of Markets
refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production
Globalization of Production
is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by its member states.
THE WORLD TRADE ORGANIZATION (WTO)
maintains order in the international monetary system; the World Bank was set up to promote economic development. It has focused on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments (such as building dams or roads). This is often seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations
THE INTERNATIONAL MONETARY FUND (IMF)
is committed to preserving peace through international cooperation and collective security
THE UNITED NATIONS
How many nations are part of the UN as of today?
193
What are the four purposes of UN according to UN Charter?
*to maintain international peace and security
*to develop friendly relations among nations
*to cooperate in solving international problems and in promoting respect for human rights
*to be a center for harmonizing the actions of nations
the ability to use something without completely using it up or destroying it or the ability to last or continue for a long time
SUSTAINABILITY
s a long-term solution to how we plan our indefinite progress in the future without causing damage to the environment so as to guarantee a safe habitat for the next generations
SUSTAINABLE DEVELOPMENT
advance way of shipping goods in long distances
Containerization
