ARUS EVERTHING

Globalization

The process of going international.

Outsourcing

An agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally.

Importing

Buying products from another country.

Balance of trade

The relationship between exports and imports.

Balance of payments

The difference between money coming into a country (from exports) and money leaving the country (for imports) PLUS money flows from tourism, foreign aid, military expenditures, and foreign investment.

Gross domestic profit

Monetary measurement of the market value of all the final goods and services produced in a specific time period by a country (way to measure economic health).

Trade deficit

The amount by which the cost of a country's imports exceeds the value of its exports.

Trade surplus

The amount by which the value of a country's exports exceeds the cost of its imports.

E-commerce

Commercial transactions conducted electronically on the internet.

Foreign Direct Investment

Refers to the purchase of assets in another country, such that it gives direct control to the purchaser over the assets.

Theory of Comparative advantage

Countries export goods/services that they produce most effectively and efficiently, and import goods/services that they cannot produce effectively or efficiently.

Theory of absolute advantage

A country has a monopoly on producing or can produce more efficiently than all other countries.

Multinational corporations

Companies that manufacture and market products in many different countries.

Small business sector

Majority of exporters, contributing to a significant portion of a country's gross domestic product.

Canada Border Services Agency (CBSA)

Responsible for enforcing goods coming into Canada, including prohibited items, items requiring permits, adherence to federal law, and certification standards.

Trade deficit

A gap that occurs when a country imports more goods and services from other countries than it exports to them.

Trade surplus

A gap that occurs when a country exports more goods and services to other countries than it imports from them.

Licensing

A company allows a foreign company to produce and sell its product for a fee.

Exporting

Selling products directly to customers in another country.

Franchising

Selling the rights to use an established business name and sell a product/service to others in a given territory.

Contract Manufacturing (Outsourcing)

A foreign company manufactures goods to which a domestic company attaches its own brand name or trademark.

Joint Venture

A partnership where two or more companies join to undertake a major project.

Strategic Alliance

A long-term partnership between two or more companies established to build competitive market advantages.

Foreign Direct Investment

Buying permanent property in a foreign market.

Sociocultural Forces

Factors related to culture, values, beliefs, rules, and institutions that impact global trading.

Economic and Financial Forces

Factors related to currency exchange rates and economic conditions that affect global trading.

Physical and Environmental Forces

Factors related to technology, infrastructure, and environmental impact that affect global trading.

Legal Forces

Factors related to laws and regulations that impact global trading.

Trade Protectionism

The use of government regulations to limit the import of goods and services.

International Trade Organizations

Organizations that mediate trade disputes among nations and regulate trade policies.

NAFTA

North American Free Trade Agreement, a free trade agreement among Canada, USA, and Mexico.

USMCA

United States Mexico Canada Agreement, a new free trade agreement signed in July 2020.

CETA

Canada-European Union Comprehensive Economic and Trade Agreement, a free trade deal between Canada and the EU.

Globalization

The increasing interconnectedness and interdependence of countries in terms of trade and culture.

Entrepreneurship

Accepting the challenge of starting and running your own business.

Small Business

A business that is independently owned and operated, typically with 1 to 99 employees.

Entrepreneurs

Individuals who want to create something bigger than themselves and are eager to make their business larger.

Micropreneurs

Individuals who organize and operate a business with less than 5 workers, taking on greater than normal financial risks.

Porter's 5 Forces

A framework for analyzing the competitive forces in an industry, including competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry.

Sole proprietorship

A type of small business run by one person, with low cost and personal liability for debts.

Partnership

A business relationship between two or more people, with shared resources and unlimited liability.

Corporation

A separate legal entity with its own shares, limited liability, and access to more finances.

Incubators

Programs or organizations that provide space, services, advice, and support to assist new businesses.

Business plan

A detailed, written agreement that describes the business opportunity, target market, operations, and projected revenues.

Crowdfunding

Raising money from a large number of people online.

Market

A group of people with unsatisfied needs and wants who have the resources and willingness to buy.

Intrapreneurs

Creative people who work as entrepreneurs within corporations.

Marketing

The process of creating, communicating, and delivering offerings that have value to customers.

Observation method

A technique for collecting primary data by contacting customers after a sale.

Production era

A period when companies focused on producing as much as possible to meet demand.

Sales era

A period when companies focused on persuading customers to buy their products.

Marketing concept era

A period when companies shifted their focus to customer needs and satisfaction.

Market orientation era

A period when companies used technology to collect and share information about customers.

Customer relationship management (CRM)

Managing customer relationships through data collection and analysis.

Social media marketing

Engaging with customers and sharing information through social media platforms.

Non-profit organization

An organization that operates for purposes other than making a profit.

Cause marketing

Tying charitable contributions to the revenues generated from a firm's products.

Otaku

People with obsessive interests who influence others to buy things.

Marketing mix (4 Ps)

Product, price, place, and promotion - the elements of marketing strategy.

Marketing research process

Defining research needs, collecting and analyzing data, and making decisions based on the findings.

Secondary data

Existing research data collected by someone else.

Primary data

Data gathered by the researcher themselves.

Environmental scanning

Monitoring and analyzing the technological, social, competitive, and legal environments.

Economic environment

The overall economic conditions that impact income, expenditures, currency shifts, and economic systems.

Marketing research process

The systematic process of gathering, analyzing, and interpreting data to make informed marketing decisions.

Consumer market (B2C)

Individuals or households that purchase goods and services for personal consumption or use.

Business-to-business (B2B)

Businesses that sell goods and services to other businesses.

Market segmentation

The process of dividing the total market into groups with similar characteristics.

Niche marketing

Targeting small but profitable market segments with specialized products.

Relationship marketing

Building and maintaining long-term relationships with individual customers by offering products that meet their specific needs.

CRM systems

Customer Relationship Management systems that capture customer information to enhance satisfaction and loyalty.

Consumer decision making

The process consumers go through when deciding which goods and services to buy.

Marketing mix

The combination of product, price, place, and promotion strategies used to market a product or service.

Total product offer

Everything that consumers evaluate when deciding to buy a product, including features, packaging, price, and reputation.

Product differentiation

Creating real or perceived differences between products to convince consumers that one product is better than others.

Packaging

The design and functionality of a product's packaging, which can enhance its value and attract attention.

Product design

The process of developing and refining products that meet specific market needs and solve user problems.

Brand

A name, symbol, or design that identifies and distinguishes a seller's goods or services from competitors.

Brand equity

The value of a brand and its associated symbols, derived from consumer perceptions and experiences.

Pricing objectives and strategies

The goals and approaches used to determine the price of a product, such as achieving a target return on investment or building market share.

Cost-based pricing

Setting prices based on the cost of production plus a desired profit margin.

Demand-based pricing

Setting prices based on what consumers are willing to pay, taking into account desired profit margins.

Retailer pricing strategies

Different approaches to pricing, such as everyday low pricing, high-low pricing, and psychological pricing.

Marketing intermediaries

Organizations that assist in moving goods and services from producers to consumers, such as wholesalers and retailers.

Channel of distribution

The path that products take from producers to consumers, which includes marketing intermediaries.

Non-store retailing

Selling products through channels other than traditional brick-and-mortar stores, such as telemarketing or e-commerce.

Promotion mix

The combination of advertising, public relations, personal selling, and direct marketing used to promote a product or service.

Sales promotion

A promotional tool that stimulates consumer purchasing and generates interest through short-term activities.

Push strategy

A marketing strategy that focuses on convincing wholesalers and retailers to stock and sell merchandise, pushing it through the distribution system to stores.

Pull strategy

A marketing strategy that directs heavy advertising and sales promotion efforts toward consumers to create demand for a product.

Word of mouth

Informal communication among consumers about a product or brand, not listed in the promotion mix.

Product life cycle

The stages a product goes through from introduction to decline, each requiring different marketing strategies.

Skimming price strategy

Pricing a new product high to make optimum profit while there is little competition.

Penetration strategy

Pricing a new product low to attract many customers and discourage competitors.

Maturity stage

A stage in the product life cycle where marketing strategies focus on product, price, place, and promotion to maintain market share.

Flashcards

Not all individual products follow the product life cycle.

Operations management

The process of producing world-class goods and services.

Moving assembly line

A production method created by Henry Ford that revolutionized mass production by allowing for faster and more efficient production.

Canada Today

Focuses on natural resources and the auto industry, but faces challenges such as dependence on the U.S. and increasing globalization.

Global competitiveness rankings

Rankings prepared by the World Economic Forum (WEF) and the International Institute for Management Development (IMD) to assess a country's competitiveness.