International Business and Trade Overview

Flashcards covering key concepts in international business and trade, globalization, and glocalization.

International Business

Any activity/endeavor among nations involving the buying, selling, exchanging of services, capital, labor, resources, and technology across country borders.

Business

An occupation, profession, or trade; an activity engaged in by people, organizations, or countries to earn income and gain a profit.

Trade

A basic economic concept involving the buying, selling, or exchange of goods and services.

Types of Business by Nature

Types of business include service, trading/merchandising, manufacturing, and hybrid business.

Types of Business by Ownership

Types of business include sole proprietorships, partnerships, corporations, and cooperatives.

Service Business

Businesses rendering services, such as barber shops, spas, and restaurants.

Trading/Merchandising

Buying or selling businesses that sell what they buy.

Manufacturing

Converting raw materials into finished products.

Hybrid Business

Businesses geared toward socially beneficial goals, including e-commerce.

Sole Proprietorship

A business owned by only one person.

Partnership

A business owned by two or more persons.

Corporation

A business generally owned by five or more persons; can have One Person Corporations (OPCs).

Cooperative

A business composed of members established to serve their common good.

Triple Bottom Line (TBL)

A business approach that includes social, environmental, and economic considerations.

Corporate Social Responsibility (CSR)

An obligation of businesses to contribute positively to society and the environment beyond profit-making.

Globalization

The increasing connectedness and interdependence of world cultures and economies.

Glocalization

The simultaneous occurrence of globalization and localization; adapting global products to local markets.

Foreign Direct Investment (FDI)

A firm investing assets into a foreign country’s economy, such as buildings or equipment.

Exporting

The act of selling domestic products to foreign markets.

Importing

The act of buying foreign products for domestic use.

Licensing

A contractual arrangement where a licensor sells the rights to use intellectual property to a licensee for royalties.

Franchising

A business model where a franchisor permits a franchisee to use its brand in exchange for a fee.

Joint Venture (JV)

A partnership between two or more parties pooling resources for a specific business purpose.

Wholly Owned Subsidiary

A company whose stock is 100% owned by a parent company.

Labor Migration

The movement of individuals from one country to another for work.

Technology Transfer

The process of conveying results from research and development to the marketplace, including skills and procedures.

Tariffs

Taxes imposed on imported goods to protect domestic industries.

Protectionism

Economic policy of restricting imports to protect domestic industries.

Trade Agreements

Contractual arrangements between countries concerning their trade relationships.

ASEAN

Association of Southeast Asian Nations, a regional intergovernmental organization comprising ten countries.

World Trade Organization (WTO)

An intergovernmental organization that regulates international trade.

Economic Indicator

Statistics that provide information about the economic performance of a country.

Global Marketplace

The international economic system where goods, services, and capital are traded across borders.

Economic Development

Improvements in economic well-being, often connected with increased international trade.

Cultural Sensitivity

Awareness and understanding of the differences among cultures and the ability to communicate accordingly.

Market Needs Assessment

An evaluation process to understand the demands and preferences of consumers in a given market.

Business Environment

The combination of internal and external factors that influence business operations.

Supply Chain Management

The management of the flow of goods and services and includes all processes that transform raw materials into final products.

Consumer Behavior

The study of individuals' decisions regarding the purchase of goods and services.

Intellectual Property

Legal rights concerning creations of the mind, such as patents and copyrights.

Trade Volume

The total quantity of goods and services traded across borders within a given period.

Negotiation Strategies

Techniques used in discussions to reach an agreement in business transactions.

Market Entry Strategy

The plan implemented by a business to begin selling its products in a new market.

E-commerce

The buying and selling of goods and services over the internet.

Economic Integration

Policies that encourage free trade and reduce barriers between countries.

Investment Climate

The economic environment that affects the willingness of foreign investors to invest in a country.

Affirmative Investment

Investment strategies that focus on responsible and sustainable investing.