Commerce Revision Flashcards

This set covers key vocabulary and concepts from the commerce revision lecture notes including trade definitions, balance of payments calculations, and advertising terminology.

Internet advertising

Promoting products online.

International trade

Trade between countries.

Balance of trade

The difference between a country's exports and imports of goods (visible trade).

Sales promotion

Short term deals used in marketing.

Sales advertising

Marketing activities focused on long term awareness.

Visible balance

The calculation of visible exports minus visible imports; for example, $71,840 - 80,090 = -8,250$ (deficit).

Invisible balance

The calculation of invisible exports minus invisible imports; for example, $74,884 - 67,720 = +7,164$ (surplus).

Current balance

The sum of the visible and invisible balances; for example, $-8,250 + 7,164 = -1,086$ (deficit).

Balance of payments

The difference in total value between payments into and out of a country.

Adverse balance of trade

Occurs when the value of imports exceeds the value of exports.

Subsidy

When a government gives finance towards home-produced goods.

Embargo

A straightforward government ban on trading between one country and another.

Tariff

A tax placed or imposed on imported goods.

Invisible items

Services or non-tangible trade components such as tourism, transport, and insurance.

Bill of lading

A document that represents the title to ownership of goods.

Informative advertising

Advertising that focuses on the provision of product information.

Hidden persuaders

Subtle advertising techniques used to influence consumers.

Corporate advertising

Advertising that is more about public relations than sales promotion.

Free port

Provides a place through which countries that have agreed to reduce or eliminate trade barriers can pass goods without customs intervention.

E-commerce

Refers to carrying out business transactions, including advertising, and electronic data exchange such as internet banking.

Transmitter

The person or organisation that is sending the communication.

Protectionism

Takes place when a trading bloc or country takes action to protect against outside competition.

Import license

Documents issued for [the entry of] goods into a country.

Quota

Limits on the quantity of goods [allowed into] a country.

Trading blocs

Groups of countries trading with fewer barriers between them.