other definitions that i didn't snag Flashcards
5 p’s of international business
production, price, preference, promotion, proximity
balance of trade
the difference in value between a countries imports & exports
bre-x
Bre-X was a group of companies in Canada. Bre-X Minerals Ltd., a major part of Bre-X based in Calgary, was involved in a major gold mining scandal when it reported it was sitting on an enormous gold deposit at Busang, Indonesia.
capital resources
buildings, equipment, tools, trucks, factories, etc.
a factor of production that cost a fortune and last very long.
businesses need a lot of money (another capital business) to buy materials & services they need to do business.
competition
rivalry between companies selling similar products/services
debt financing
when a company borrows money to be paid back with interest
demand
the quantity of a good/service that consumers are willing and able to buy at a particular price
dividend
a distribution of a portion of a company’s earnings, decided by the board of directors, paid to a class of it shareholders.
economic issues
asserts that an economy’s finite resources are insufficient to satisfy all human wants & needs.
enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded in 1985 as a merger between Houston Natural Gas and InterNorth, both relatively small regional companies.
equity financing
money from investments or savings
EU
the political and economic union of 28 member states that are primarily located in europe
euro
european currency
expenses
money spent/loss
human resources
the component of employee well-being
interdependent
businesses relying on each other
law of demand
as the price of a good/service increases, quantity, demanded decreases and vice versa
law of supply
an increase in price results, the increase in quality supplied
liability
a company’s financial debts/obligations that arise during the course of business operations.
limited liability
where the liability of a business owner is limited to amount that the owner has invested in the company.
manufacturing business
a business that uses components, parts or raw materials to make a finished good.
marketplace
where producers and consumer come together
meger
the combination of 2 or more companies to achieve greater efficiencies
NAFTA
north american free trade agreement. an agreement among the US Canada and Mexico, to remove tariff barriers between the countries, now called United States-Mexico-Canada Agreement (USMCA)
natural resources
raw materials that come from the earth, water and air.
needs
essential for life
obsolete
products that are not wanted anymore and are no longer available
occupational health & safety act
employees have the right to :
1 - refuse unsafe work
2 - participate in the workplace health and safety activities
offshoring
relocation of a business from one country to another
pay equity
all being paid equally/the elimination of pay discrimination
profit
financial gain.
the difference between the amount earned and the amount spent in buying/operating/producing/etc.
pyramid scheme
illegal investment in which paying participant recruits two further with returns being given to early participants using money contributed by later ones.
retail business
selling consumer goods/services to customers through channels of distribution
revenue
money that a company actually receives
service businesses
company that provides work performed in an expert manner. usually intangible services.
strategic alliance
an agreement between 2 or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations.
supply
quantity of a good/service that businesses are willing to provide
sustainable development
economic development that is conducted without depletion of natural resources
tariff
a tax to be paid on a particular class of imports/exports.
taxes on products from elsewhere.
trade deficit
when a country’s imports>exports
trade surplus
when a country’s exports>imports
unlimited liability
legal obligation general partners and sole proprietors because they are liable for all business debts if they can’t pay liabilities
Barriers to International Business
Tariffs - Tax on certain kinds of imports, gives a price advantage to Canadian profit goods.
Non Tariff Barriers - Standards for the quality of imported goods.
Cost of Importing and Exporting - The landed cost is the actual cost for an imported purchased item, composed of the vendor cost, transportation charges duties, taxes, broker fees, other charges, etc.
Excise Taxes - A tax on the manufacture, sale, or consumption of a particular product within a country, ex.) gasoline ⭐usually done to raise government funds.
Currency Fluctuations - CAD Dollar $1 - USD $0.78
