Theme 4 Flashcards
Administrative barriers
Bureaucratic procedures that a training firm has to get through when shipping a product from one country to another
Barriers to entry
Restrictions/rules firm needs to meet to reach a level a business wants to sell and produce
Common market
A group of countries imposing few to no duties on trade with one another and a common tariff trade with other countries
Comparative advantage
Tools to estimate the value of a specific property by evaluating similar ones that have been recently sold in the same area
Competition policy
Rules which all companies need to abide to be competitive and fair towards rivals in the market
Competitive advantage
Point at which a firm has an advantage against other competitors by providing better value, quality, and service
Cost competitiveness
Cheaper compared to other products and services
Cost leadership
Company conveyed as the cheapest manufacturer or provider of a particular product/commodity in a competition
Cultural audit
Reviewing both subjective values within an organisation and the actual, observable conduct by employees and vendors
Customs union
Group of states agreeing to charge the same import duties as each other and usually allow free trade for themselves
Differentiation
Distinct difference products and services provided against rivals, making them stand out
Direct action
The use of strikes, demonstrations, or other public forms of protest, not negotiations
Disposable income
Income leftover from all expenses of a customer
Division of labour
Allocation of work a business provides to its employees or lower businesses (outsourcing)
Dumping
Foreign firms dump products at artificially low prices in the European market
Economic and monetary union
The coordination of economic and fiscal policies, a common monetary policy and currency (i.e, €)
Economic growth
Amount of production capacity in an economy measured by Gross Domestic Product (GDP)
Economic risk
The risk involved in investing in a business opportunity in an international market that arises from changes in policies (fluctuations)
Economic union
Agreement between two or more nations to allow goods, services, money, and workers to move over boarders freely
Embargo
An official ban on trade or other commercial activity with a particular country
Emerging economies
Markets with rapid economic growth and higher risk
Ethnocentrism
Businesses that don’t adjust their products to the culture of the country they are selling to
Exchange rate
A currency expressed in another currency
Exports
Products that are going out from the country that’s originally produced
Foreign Direct Investment (FDI)
An organisation in one country investing in another country
Franchising
An individual purchasing a business to run an established company
Free trade area
An area where a business from one country can freely import and export goods to another country
Globalisation
Operating in different countries using its specialties and infrastructure
Global competitiveness
International competition which the position of an enterprise in 1 country affects the competitive position in other countries
Global marketing strategy (GMS)
Includes all countries and aims at coordinating a company’s marketing efforts in markets in these countries
Global niche market
A market for niche businesses who offer unique and specialised products and services
Glocalisation
Conducting a business according to both local and global considerations
High-context cultures
Intuitive, contemplative, and concerned with the collective
Human Development Index (HDI)
Combination of statistics on Literacy, GDP per capita, and health to make comparisons to indicate growth
Import quota
Physical limit of goods going in a country in a given period
Imports
Goods that are going in from a different country
Infant industries
New early stages of development, not capable of competing against established industry competitors
Infrastructure
Facilities of a the country that makes trading easier (roads, networks, buildings, ports - basic levels of facilities)
Intellectual property
Intangible property that is the result of creativity (i.e., patent, copyrights, etc)
International trade
Way in which companies (Global) who trade imports and exports between countries
Licensing
Obtaining permission from a company to manufacture and sell one or more of its products within a define market area
Literacy rate
Stats where people are able to read and write until the age of 15
Localisation
Operating in a local area within the business
Low-context cultures
People tend to have many connections but of shorter duration for some specific reason
Multinational companies (MNCs)
A company that has business operations in at least one country other than its home country
Off-shoring
Basing a company overseas
Outsourcing
A firm hiring a business that specialises in one aspect (i.e., Aspens)
Preferential trading area
Reduced protectionism as a number of select goods and services amongst the countries involved
Pressure group
Group of people who either agree or disagree with business’ actions, applying force to change or encourage actions
Protectionism
Shielding a country’s domestic industries from foreign competitiveness
Pull factors
Something that happens in a marker that attracts the business towards it
Purchasing Power Parity
Price relatives that show the ratio of the prices in national currencies of the same good or services in different countries
Push factors
An existing market forces a business to look elsewhere for success and survival
Regional Trade Agreement
Treaty between two or more governments that define the rules of trade for all signatories
Reverse Engineering
the reproduction of another manufacturer’s product following a detailed examination of its construction or composition.
Risk
anything that threatens an organization’s ability to generate profits at its target levels
Rules of Origin
the criteria needed to determine the national source of a product
Saturation
when the volume of a product or service in a marketplace has been maximized
Single market
an area where trade borders have been removed and free movement of goods, services, and people is permitted.
Skills shortage
a genuine lack of adequately skilled individuals. available in the accessible labor market with the type of skill being, sought and which leads to difficulty in the recruitment
Specialisation
focusing on one product or a limited scope of products so as to become more efficient
Subsidy
Money provided by the Gov’t to help business grow successfully, but requires a business plan to be eligible
Tariffs
Taxes that need to be paid to trade in one country outside of the trading bloc
Tax avoidance
Legal methods to minimise taxes, takes advantage of laws and loopholes
Tax evasion
illegal methods to avoid paying tax
Trade barriers
Restrictions placed between trading blocs and countries (i.e., tariffs, quotas, etc.)
Trading bloc
Groups of countries with agreed regulations applied to freely trade with one another in the same group (depends on laws)
Transfer pricing
the pricing of transactions between related parties and covers goods, services, intangible property and debt
World Trade Organization (WTO)
the only global international organization dealing with the rules of trade between nations
