Vocab- Basic International Concepts Flashcards
International Product
a customized product adapted to the culture, tastes, and social trends of a country
Inventory Control
monitoring the amount of raw materials and completed goods on hand
Globalization
The process by which businesses or other organizations develop international influence or start operating on an international scale.
Comparative Advantage
The principle that a country, business, or individual can produce a good or service at a lower opportunity cost than others, giving them a competitive advantage in trade.
Cultural Sensitivity
Understanding and adapting to cultural differences in business practices, communication styles, and social norms to facilitate successful international business relationships.
Foreign Direct Investment (FDI)
FDI is when a company or person invests money from one country into businesses based in another.
Balance of Trade
It’s the difference between the value of a country’s exports and imports.
Balance of Payment
includes all economic transactions between a country and the rest of the world. (kind of like accounting)
Tariffs
Taxes on imported goods
Trade Barriers
obstacles that restrict the flow of goods and services between countries.
Exchange Rates
The value of one country’s currency in terms of another currency.
Exporting
involves selling goods or services to other countries.
Importing
involves buying goods or services from other countries.
Multinational Corporations (MNCs)
Large companies that operate in multiple countries, managing production, marketing, and other business activities in various locations.
Political and Legal Considerations
Understanding the political and legal environments in different countries, including regulations, government stability, and legal systems.
