Competing in Global Markets

These flashcards cover key concepts and vocabulary from the lecture on competing in global markets.

Dynamic Global Market

A market characterized by frequent changes and opportunities for businesses to grow internationally.

Free Trade

The movement of goods and services among nations without political or economic barriers.

Comparative Advantage Theory

A theory stating a country should sell products it produces most efficiently and buy those it cannot produce as effectively.

Absolute Advantage

The ability of a country to produce a good more efficiently than any other country.

Trade Protectionism

Government regulations that limit imports to protect domestic industries.

Dumping

Selling products in a foreign market at lower prices than in the producing country.

Tariffs

Taxes imposed on imported goods to make them more expensive and protect domestic industries.

Trade Balance

A measure of the difference between a country's exports and imports.

Currency Exchange Rate

The value at which one currency can be exchanged for another.

Global Competition

The competition among businesses from different countries in the global market.

Outsourcing

Contracting external organizations to handle certain business functions instead of managing them internally.

Emerging Markets

Economies that are expanding and becoming more integrated into the global marketplace.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Countertrading

A complex form of bartering involving multiple countries trading goods and services.

Exporting

Selling products to another country.

Importing

Buying products from another country.

Net Employment Growth

The increase in the number of jobs in a particular sector or economy.

Sociocultural Forces

Social and cultural influences that affect business practices and consumer behavior in different regions.

WTO

World Trade Organization, an international body that regulates and mediates trade agreements and disputes among countries.

Innovation and Entrepreneurship

The processes of developing new ideas or products and creating businesses to capitalize on those innovations.