International Business Study Guide Flashcards

Comprehensive vocabulary flashcards covering key terms and concepts across all 10 units of the international business study guide.

International business

Business activities involving more than one country.

Imports

Goods or services purchased from another country.

Exports

Goods or services sold to another country.

Globalization

Increasing connections between countries through trade, investment, technology and culture.

Primary industry

Obtaining natural resources, such as farming, fishing and mining.

Secondary industry

Processing resources or manufacturing products.

Tertiary industry

Providing services, such as banking and transportation.

Value added

The extra value created by processing, manufacturing or improving a product.

Absolute advantage

Being able to produce something using fewer resources than another producer.

Comparative advantage

Being able to produce something at a lower opportunity cost.

Opportunity cost

The next-best alternative you give up when making a choice.

Economies of scale

Lower average costs per unit as production increases.

Trade barrier

Something that restricts or makes international trade more difficult.

Tariff

A tax on imported goods.

Quota

A limit on the quantity of a product that can be imported.

Embargo

A prohibition on certain trade.

Subsidy

Government financial assistance to a business or industry.

Protectionism

Policies intended to protect domestic businesses from foreign competition.

Free trade

Trade with reduced barriers between countries.

Dumping

Selling exports below their normal value, often described in your course as below the domestic selling price.

Trade mission

An organized visit intended to build business relationships and trade opportunities abroad.

Trade agreement

Rules and commitments agreed to by countries.

Trade organization

An institution through which countries cooperate.

NAFTA

Historical agreement between Canada, the United States and Mexico that took effect in 1994.

CUSMA

Trade agreement that replaced NAFTA in 2020, covering Canada, the United States and Mexico.

CETA

Trade agreement between Canada and the European Union that reduces barriers and improves market access.

European Union

A political and economic union with an integrated market; not every member uses the euro.

WTO

Provides a framework for trade rules, negotiations and dispute settlement.

IMF

Focuses on monetary and financial stability, economic advice and lending for balance-of-payments problems.

World Bank

Focuses on long-term development and poverty reduction.

APEC

Encourages economic cooperation and trade facilitation in the Asia-Pacific region.

OECD

Provides economic research and policy cooperation.

G7/G20

Forums for international economic and policy coordination.

OPEC

Coordinates petroleum policies among member countries.

ISO

Develops international standards.

Exporting

Selling products abroad.

Licensing

Allowing another business to use intellectual property for payment.

Franchising

Allowing another operator to use a brand and business system.

Joint venture

Businesses share ownership of an operation.

Foreign subsidiary

A foreign business controlled by a parent company.

Royalty

Payment for using intellectual property.

Foreign direct investment

Investment involving a lasting interest and significant influence in a foreign business.

Portfolio investment

Investment in financial assets primarily for returns, without managerial influence.

Multinational enterprise

A company with business operations in multiple countries.

Culture

Shared beliefs, values, customs and ways of behaving.

Cultural determinants

Factors shaping culture, such as history, religion, geography and politics.

Subculture

A group with distinct cultural features within a larger society.

Counterculture

A group that rejects important values of the dominant culture.

Cultural intelligence

The ability to work effectively with people from different cultures.

Monochronic

Emphasis on schedules and doing one task at a time.

Polychronic

More flexible timing and overlapping activities.

Power distance

The extent to which unequal power and hierarchy are accepted.

Individualism

Emphasis on personal independence and individual goals.

Collectivism

Emphasis on group relationships and obligations.

Uncertainty avoidance

The extent to which people are uncomfortable with uncertainty and ambiguity.

Market economy

Production is mainly guided by private decisions, supply and demand.

Command economy

Government directs major production and resource-allocation decisions.

Mixed economy

Combines market activity with government involvement.

Democracy

People participate in government through elections and representation.

Autocracy

Power is concentrated in one ruler or a small group.

GDP

The monetary value of final goods and services produced within a country during a period.

GDP per capita

GDP divided by population.

Exchange rate

The value of one currency in terms of another.

Appreciation

A rise in a currency’s market value.

Depreciation

A fall in a currency’s market value.

Expansion

Stage of the business cycle where production, spending and employment generally grow.

Peak

The high turning point in the business cycle before contraction.

Recession/contraction

Stage of the business cycle where economic activity declines and unemployment tends to rise.

Trough

The low turning point in the business cycle.

Recovery

Stage of the business cycle where economic activity begins growing again.

Global strategy

Uses largely standardized products and marketing across countries.

Multidomestic strategy

Adapts products and marketing to each country.

Transnational strategy

Combines shared global resources with local adaptation.

Centralized

Organizational structure where major decisions are concentrated at headquarters.

Decentralized

Organizational structure where local operations have greater decision-making authority.

Rationalization

Reorganizing operations to improve efficiency.

Product (Marketing Mix)

Features, quality, design, packaging and customer benefits.

Price (Marketing Mix)

What buyers pay, considering costs, competition and affordability.

Place (Marketing Mix)

Distribution channels and where customers obtain the product.

Promotion (Marketing Mix)

Advertising and other communication used to inform and persuade customers.

Primary research

Collecting new information for a specific research purpose.

Secondary research

Using existing information collected previously.

Target market

The customer group a business chooses to serve.

Market segmentation

Dividing customers into groups with shared characteristics.

Branding

Creating a recognizable identity for a product or business.

Brand equity

The value associated with a brand’s recognition, reputation and customer trust.

Differentiation

Making an offer distinct from competitors.

Positioning

How a business wants customers to view its offer relative to competitors.

Standardization

Keeping products or marketing consistent across markets.

Adaptation

Changing products or marketing for a particular market.

B2B / B2C / B2G

Business-to-business, business-to-consumer and business-to-government transactions.

Supply chain

The connected activities and businesses involved in producing and delivering a product.

Logistics

Managing the movement and storage of goods and materials.

Production logistics

Ensuring production has the right materials, quantities and timing.

Outsourcing

Hiring an external business to perform a function.

Insourcing

Performing a function internally.

Offshoring

Locating business activities in another country.

Horizontal integration

Acquiring businesses at the same stage, such as competitors.

Vertical integration

Controlling different stages of a supply chain.

Just-in-time inventory

Timing deliveries close to when materials are needed to reduce stored inventory.