BBB4M Final Exam Review: International Business

Vocabulary-style flashcards covering the key terms and concepts for the BBB4M International Business Final Exam, including trade barriers, economic systems, and marketing strategies.

Importing

The process of bringing goods or services into a country from abroad for sale.

Exporting

The act of sending goods or services to another country for sale.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Value added

The amount by which the value of an article is increased at each stage of its production, exclusive of initial costs.

Branch plant

A factory or manufacturing facility belonging to a larger organization but located in a different area or country from its headquarters.

Global sourcing

The practice of sourcing from the global market for goods and services across geopolitical boundaries to gain advantages.

Tariff

A tax or duty to be paid on a particular class of imports or exports.

Trade quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a set period.

Trade sanctions

Penalties or restrictive measures applied by one or more countries against another country to provide incentives for obedience with international law or rules.

Protectionism

The theory or practice of shielding a country's domestic industries from foreign competition by taxing imports.

Licensing

A business arrangement in which one company gives another company permission to use its intellectual property or manufacture its products for a fee.

Franchise

An authorization granted by a company to an individual or group enabling them to carry out specified commercial activities using the company's brand.

Outsourcing

Obtaining goods or services from an outside or foreign supplier, especially in place of an internal source.

Foreign subsidiary

A company that is owned and operated by a parent company located in another country.

Common currency

A single currency shared and used by two or more nations, such as the Euro.

Dollarization

The process where a country aligns its currency with the U.S. dollar or uses the U.S. dollar as its legal tender.

Exchange rate

The value of one currency for the purpose of conversion to another.

Hard currency

Money issued by a nation seen as politically and economically stable, which is widely accepted around the world.

Soft currency

A currency that is expected to fluctuate or depreciate as a result of a country's political or economic uncertainty.

Global strategy

A strategy where a company uses the same product and marketing approach across all world markets.

Multidomestic strategy

A strategy in which a company decentralizes its decision-making and tailors products and marketing to local markets.

Transnational strategy

A strategy that seeks to achieve both global efficiency and local responsiveness.

NGOs

Non-governmental organizations; non-profit groups that function independently of government, often to serve social or political goals.

CSR

Corporate Social Responsibility; a business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Business ethics

The study of appropriate business policies and practices regarding potentially controversial subjects like corporate governance or discrimination.

Stakeholder analysis

The process of identifying and assessing the individuals or groups that can affect or be affected by a business's actions.

Primary stakeholders

Groups having a direct and necessary interest in a company, such as employees, customers, and investors.

Secondary stakeholders

Groups that have an indirect interest or influence on a company, such as media, community groups, or NGOs.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture.

Monochronic

A culture where time is perceived as linear and people tend to do one thing at a time.

Polychronic

A culture where time is perceived as cyclical and people are comfortable doing multiple things simultaneously.

Hofstede's dimensions

A framework for understanding cultural differences in terms of power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation.

Market economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

Mixed economy

An economic system that combines elements of both private enterprise and government control.

Centrally planned economy

An economic system where the government or central authority determines what goods are produced and their prices.

Democracy

A system of government where the population participates in decision-making, typically through elected representatives.

Autocracy

A system of government by one person with absolute power.

GDP

Gross Domestic Product; the total value of all goods and services produced within a country's borders in a specific time period.

Business cycle

The natural fluctuation of the economy between periods of expansion (growth) and recession (contraction).

Lobbying

The activity of trying to influence the decisions of government officials or legislators on behalf of a specific group or cause.

Least developed country

A country that exhibits the lowest indicators of socioeconomic development, according to United Nations criteria.

Economies of scale

The cost advantages that a business obtains due to its scale of operation, where cost per unit decreases as volume increases.

Target market

The specific group of consumers toward which a company aims its products and services.

Demographics

Statistical data relating to the population and particular groups within it, such as age, gender, and income.

Psychographics

The study of consumers based on psychological variables like attitudes, values, interests, and lifestyles.

Direct competition

Competition between companies that offer similar products and services to the same target market.

Indirect competition

Competition between companies that offer different products but satisfy the same consumer need.

Competitive advantage

A condition or circumstance that puts a company in a superior business position compared to its rivals.

Four Ps

The key elements of the marketing mix: Product, Price, Place, and Promotion.

Two Cs

The two external factors of the marketing mix: Consumers and Competition.

Discretionary income

The amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities have been paid.

Marketing mix

A set of controllable elements (the Four Ps) used by a company to influence a target market's response.