BBB4m exam

Domestic Business

A business that conducts most of its transactions within the borders of its home country.

International Business

The economic system of transactions conducted between businesses located in different countries.

Foreign Market

The customers of a business who live in a different country than the one where the business operates.

Tariffs

Taxes or duties placed on imported products or services.

Exchange Rate

The amount of one country’s currency in relation to the currency of another country.

Absolute Advantage

The ability of one country to use its resources to make a product or service more efficiently than other countries.

Opportunity Cost

The value of what is foregone, or the cost of giving something up to get something else.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Cultural Determinants

The main factors that shape the culture of a specific group.

Logistics

The management of the flow of goods and services both into and out of an organization.

Outsourcing

The strategic use of outside resources to perform activities that were previously handled internally by the company.

Microcredit

The granting of very small loans to spur entrepreneurship, allowing individuals to start small businesses.

Ethical Imperialism

The belief in universal ethics across all cultures.

Cultural Relativism

The belief that ethical standards depend on cultural context.

Primary Data

Data observed or collected by a business that relates specifically to its needs or problems.

Secondary Data

Data collected by someone other than the user, such as censuses and surveys.

Protectionism

The theory or practice of shielding domestic industries from foreign competition.

Trade Organizations

Groups established to help with the free flow of goods and services.

Business Cycle

Recurring periods of increased and decreased economic activity.

Globalization

The process whereby national or regional economies and cultures become integrated.