Intro to Business Test 1

Chapters 1 2 3 4

Artificial Intelligence (AI)

Relates to machine (computer) learning that is able to perform activities and tasks that usually require human intelligence.

Big Data

Large volumes of structured and unstructured data that are transmitted at very fast speeds.

Blockchain

A decentralized record keeping technology that stores linked.

Budget Deficit

The condition in which a nation spends more than it takes in from taxes.

Business

Individuals or organizations who try to earn a profit by providing products that satisfy people’s needs.

Capitalism (free enterprise)

An economic system in which individuals own and operate the majority of businesses that provide goods and services.

Communism

First described by Karl Marx as a society in which the people, without regard to class, own all the nations resources.

Competition

The rivalry among businesses for consumer’s dollars.

Demand

The number of goods and services that consumers are willing to buy at different prices at a specific time.

Depression

A condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced.

Drones

Unmanned aerial devices, can be programed with AI to perform human tasks such as delivering products or collecting environmental data and imagery.

Economic Contraction

A slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers.

Economic System

A description of how a particular society distributes its resources to produce goods and services.

Economics

The study of how resources are distributed for production of goods and services within a social system.

Entrepreneur

An individual who risks their wealth, time, and effort to develop for profit an innovative product or way of doing something.

Equilibrium Price

The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific time.

Financial Resources (capital)

The funds used to acquire the natural and human resources needed to provide products also called capitalism.

Free Market System

Pure capitalism, in which all economic decisions are made without government intervention.

Gross Domestic Product (GDP)

The sum of all goods and services produced in a country during a year.

Human Resources (labor)

The physical and mental abilities that people use to produce goods and services also called labor.

Inflation

A condition characterized by a continuing rise in prices.

Mixed Economies

Economies made up of elements from more than one economic system.

Monopolistic Competition

The market structure that exists when there are a large number of businesses competing for market share and the differences among the goods they sell are small.

Monopoly

The market structure that exists when there is only one business providing the product in a given market.

Natural Resources

Land, forests, minerals, water, and other things that are not made by people.

Nonprofit Organizations

Organizations that may provide goods or services but do not have the fundamental purpose of earning profits.

Oligopoly

The market structure that exists when there are very few businesses selling a product.

Open Economy

An economy in which economic activties occur between occur between the country and the international community.

Product

A good, service, or idea with tangible and intangible characteristics that provide satisfaction and benefits.

Profit

The difference between expenses to produce and sell a product and what a customer pays for it.

Pure Competition

The market structure that exists when there are many small businesses selling one standardized product.

Reccession

A decline in production, employment, and income.

Socialism

An economic system in which the government owns and operates basic industries, but individuals own most businesses.

Stakeholders

Groups that have a stake in the success and outcomes of a business.

Standard of Living

Refers to the level of wealth and material comfort that people have availible to them.

Supply

The number of products goods and services that businesses are willing to sell at a different price at a specific time.

Technology

Includes the methods and processes creating applications to solve problems, perform tasks, and make decisions.

Unemployment

The condition in which a percentage of the population wants to work but is unable to find jobs.

Bribes

Payments, gifts, or special favors intended ton influnce the outcome of a decision.

Business Ethics

Principles and standards that determine acceptable conduct in business.

Compliance

Adhering to rules and laws such as local, state, and federal laws, office policies, and accepted industry guidelines and standards.

Consumerism

The activties that independent individuals, groups, and organizations undertake to protect their rights as consumers.

Corporate citizenship

The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities places on them by their stakeholders.

Environmental Social and Governance framework (ESG)

A framework that enables the evaluation of a firms efforts to operate sustainably, contribute to social causes and engage in responsible and ethical conduct.

Ethical Issue

An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.

Opportunity

A set of conditions that limit barriers or provide rewards for ethical conduct.

Plagerism

The act of taking someone else’s work and presenting it as your own without mentioning the source.

Social Responsibility

A businesses obligation to maximize its positive impact and minimize its negative impact on soceity.

Sustainability

Conducting activities in a way that allows for the long term well being of the natural environment, including all biological entities; involves the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment.

Whistleblowing

The act of an employee exposing an employers wrongdoing to outsiders, such as the media or government regulatory agencies.

Absolute Advantage

A monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item.

Asia Pacific Economic Cooperation (APEC)

An international trade alliance that promotes open trade and economic and technical cooperation among member nations.

Association of Southeast Asian Nations (ASEAN)

A trade alliance that promotes trade an economic integration among member nations in southeast asia.

Balance of Payments

The difference between the flow of money into and out of a country.

Balance of Trade

The difference in value between a nations exports and imports

Cartel

A group of firms or nations that agrees to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets.

Comparative Advantage

The basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.

Contract Manufacturing

The hiring of a foreign company to produce a specified volume of the initiating company’s product to specification; the final product carries the domestic firms name.

Countergrade Agreements

Foreign trade agreements that involve batering products for other products instead of currency

Direct Investment

The ownership of overseas facilities

Dumping

The act of a country or business selling products at less than what it costs to produce them.

Embargo

A prohibition on trade in a particular product.

European Union (EU)

A union of European nations establishes in 1958 to promote trade among its members; one of the largest single markets today.

Exchange Controls

Regulations that restrict the amount of currency that can be brought or sold.

Exchange Rate

The ratio at which one nations currency can be exchanges for another nations currency

Exporting

The sale of goods and services to foreign markets

General Agreement on Tariffs and Trade (GATT)

A trade agreement, originally signed by 23 nations in 1947, that provided a forum for tarrif negotiations and a place where international trade problems could be discusses and resolved.

Global Stategy (Globalization)

A strategy that involves standardizing products (and as much as possible, their promotion and distribution) For the whole world as if it were a single entity.

Import Tariff

A tax levied by a nation on goods imported into the country.

Importing

The purchase of goods and services from foreign sources.

International Business

The buying, selling, and trading, of goods and services across national boundaries.

International Monetary Fund (IMF)

Organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.

Joint Venture

A partnership establishes for a specific project or for a limited time

Liscencing

A trade arrangement in which one company the liscencor allows another company the licensee to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty.

Multinational Coporporation (MNC)

A corporation that operates on a worldwide scale, without significant ties to any one nation or region.

Multinational Strategy

A plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences.

Offshoring

The relocation of business processes by a company or subsidiary to another country. Offshoring is different than outsourcing because the company retains control of the offshores processes.

Quota

A restriction on the number of units of a particular product that can be imported into a country.

Strategic Alliance

A partnership formed to create competitive advantage on a worldwide basis.

Trade Deficit

A nations negative balance of trade, which exists when that country imports more products than it exports.

Trading Company

A firm that buys goods in one country and sells them to buyers in another country.

United States Mexico Canada Agreement (USMCA)

Agreement that eliminates most tariffs and trade restrictions to encourage trade among the United States, Mexico, and Canada.

World Bank

An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries; formally known as the international bank for reconstruction and development.

World Trade Organization (WTO)

International Organization dealing with the rules of trade between nations.