Business in a Global Economy

These flashcards cover key concepts from the lecture on business in a global economy, focusing on globalization, trade, entrepreneurship, and small business dynamics.

What is Globalization?

The movement toward a more interconnected and interdependent world.

What does FDI stand for?

Foreign Direct Investment.

What is offshoring?

The movement of production or other functions from a domestic site to a foreign location.

What is outsourcing?

The assignment of certain tasks, such as production or accounting, to an outside organization.

What are some benefits of international trade?

Higher standard of living, economic growth.

What are some costs of international trade?

Job outsourcing, poor working conditions.

What are protectionist trade barriers?

Measures to protect domestic industries from foreign competition.

What is a tariff?

A tax on imported goods or services.

What are quotas?

A limitation on the amount of a specific import allowed to enter a country.

What is an embargo?

A total restriction on an import or an export.

What are local content requirements?

Regulations that require some portion of a good to be produced domestically.

What does comparative advantage mean?

When a country can produce a good at a lower opportunity cost than another country.

What is dumping?

Selling a product at a price below its cost in a foreign country.

What is the gig economy?

An economy characterized by flexible, temporary jobs, often mediated by digital platforms.

What is the role of small businesses?

They create competitive markets, provide variety, and drive innovation.

What characterizes an entrepreneur?

An entrepreneur is someone who transfers ideas into a business.

What is the difference between leadership and management?

Leadership involves motivating and inspiring employees, while management focuses on organizing and controlling resources.

What is the impact of technology on small businesses?

Technology reduces costs and allows for digital operations without needing to hire extensively.

What does 'economies of scale' mean?

The cost advantage obtained due to the scale of operation, with cost per unit of output generally decreasing with increasing scale.

What is a joint venture?

A business arrangement in which two or more parties agree to pool their resources for a specific task.

What is franchising?

A method of doing business in which a franchisee pays for the rights to operate a business using the franchiser's brand and system.

What are the types of entrepreneurs?

Life style, micro, home-based, internet, growth, intrapreneurs, social, serial, and entrepreneurial teams.

What is a strategic alliance?

A formal arrangement between two or more parties to pursue a set of agreed objectives while remaining independent organizations.

What is the significance of multinational enterprises (MNE)?

They operate in multiple countries and can influence global trade and investments.

What is the goal of corporate social responsibility (CSR)?

To ensure that businesses operate in an ethical manner, considering their social, economic, and environmental impact.

What is the benefit of exporting?

Selling domestically produced goods in a foreign market.

What is contract manufacturing?

Outsourcing the production of goods to another company.

What are fixed costs?

Costs that do not change with the level of goods or services produced.

Who are digital nomads?

Young people who work remotely while traveling.

What is a niche market?

A small, specialized market for a particular product or service.

What is a small business defined by?

Being locally based, independently owned, and having fewer than 500 employees.

Why do entrepreneurs matter?

They drive innovation, provide goods and services, and create jobs.