The Global Business Environment Flashcards
Globalization
The rapid and unintended flow of capital, labor, and ideas across national borders
Infrastructures
Basic roads, services, utilities, ect
Brain drain
A country or region losing its most talented, educated employees to jobs in other countries
Culture
A regions unique customs or traditions
Political climate
Some nations are politically unstable and, therefore, are not popular for trade or travel
Nationalism
A sense of pride in one’s own country that can create a resistance to outside influences
Outsourcing
Finding new supplies of natural resources
Cultural intelligence
An understanding of and sensitivity to the difference in customer, traditions, and values that exist among cultures
Economic factors
Economic growth, inflation, interest rates, unemployment rates, changing incomes
Discretionary items
Products that are wanted but not needed
Environmental scanning
Keeping track of external factors and their changes
Legal responsibility
A business is responsible for operating within the confines of federal, state, and local laws
Philanthropic responsibility
A business is responsible for contributing to society in a charitable manner
Marketing orientation
A strong focus on meeting customer needs and wants
Domestic trade
An exchange of internally produced goods and services within a country
Global trade
Takes place when a product is produced in one country and consumed in another
Imports
Goods or services bought from producers in other countries
(Going into the country
Exports
Goods or services businesses sell to other counties (leaving the country
Absolute advantage
When one country is able to produce a good or service at a lower cost than another country can
Comparative advantage
The benefit a country gets from specializing in and making the goods and services at which its most efficient relative to another country
Balance of payments
The annual accounting record that a nation uses to track money coming into and out of the country
Trade surplus
When a country exports more goods and services than it imports
Trade deficit
If a country imports more than it exports
Protectionism
A national who attempts to limit its trade with other countries
