international business: domestic bussiness

What is domestic business?

Business activities that occur within a country's borders, such as making, buying, and selling goods and services.

What defines international business?

All business activities needed to create, ship, and sell goods and services across national borders.

Why is international business important?

It provides access to foreign goods, sources of raw materials, new market opportunities, and can improve political relations.

When did international business begin?

Evidence suggests trading began 15,000 years ago with countries like China, India, and Japan.

What role did the Roman Empire play in international business?

The Roman Empire dominated international business for over 600 years.

What inventions between 1769 and 1915 influenced international business?

The cotton gin, steam engine, and telephone improved communication, distribution, and production.

What are imports?

Products bought from businesses in other countries.

What are exports?

Products sold to other countries.

What are trade barriers?

Restrictions that reduce free trade among countries.

What forms can trade barriers take?

Import taxes, quotas, and laws preventing certain products from entering a country.

How does the international business environment differ from local business?

International business faces different environmental challenges and consumer preferences.

What is the significance of interdependence in international trade?

Increased trade among countries leads to greater economic interdependence.

What can be a consequence of expanded international trade?

It can improve political relations between countries.

What is the relationship between domestic and international business?

Domestic business occurs within a country, while international business involves cross-border transactions.

What is the impact of international business on consumer choice?

It allows consumers to access a wider variety of goods and services from around the world.

What historical evidence suggests early international trade?

Trading activities between Africans and South Americans several thousand years ago.

What is the role of cash payments in international trade?

Cash payments are typically made for items bought or sold in international trade.

What is the significance of the Holy Roman Empire in trade history?

It was a significant political entity that influenced trade in Europe.

What is a quota in the context of trade barriers?

A restriction that limits the number of imports allowed into a country.

How do trade barriers affect consumers?

They can increase the cost of foreign products and limit availability.

What is the role of specialization in the development of international business?

Specialization allows for increased efficiency and dependency on international trade.

How does international business affect local economies?

It can create new market opportunities and influence local production and consumption patterns.

What is the significance of the term 'global economy'?

It refers to the interconnected economies of countries around the world.

What are the four major categories of the international business environment?

Geographic conditions, cultural and social factors, political and legal factors, and economic conditions.

What is the significance of international business in today's economy?

International business is crucial as it requires specific skills and knowledge for participation in the global economy.

List some important subject areas for global business.

History, Geography, Foreign Language, Cultural Awareness, Study skills.

What roles do individuals play in society related to international business?

Workers, citizens, and consumers.

How does international business affect consumer choices?

Consumer choices expand as goods and services are no longer limited to items produced in one country.

What is scarcity in economics?

Scarcity refers to the limited resources available to satisfy unlimited needs and wants.

What is the study of how people use limited resources called?

Economics.

What are the two main elements that determine prices?

Supply and demand.

What is the market price?

The point at which supply and demand cross.

What is inflation?

An increase in the average prices of goods and services in a country.

What causes demand-pull inflation?

It occurs when demand exceeds supply, often due to increased money circulation.

What is cost-push inflation?

Inflation caused by increased business expenses, leading to higher prices.

What are the three types of resources used to produce goods and services?

Natural resources, human resources, and capital resources.

What is an economic system?

The method a country uses to answer basic economic questions about production and distribution.

What are the three common types of economic systems?

Command economies, market economies, and mixed economies.

What characterizes a command economy?

The government or a central-planning committee regulates production, distribution, and pricing.

What is communism in economic terms?

A political and economic system where the government owns all productive resources and controls the economy.

How do market economies operate?

Decisions are made based on the forces of supply and demand without central planning.

What is the relationship between supply and demand?

Supply is the amount of a good available, while demand is the amount consumers are willing to purchase.

What happens to prices when demand exceeds supply?

Prices tend to rise.

What is the role of government in a command economy?

The government owns productive resources and regulates all economic activities.

What is the impact of international trade on business owners?

It affects them as competitors may import or export products, influencing market dynamics.

What is the significance of cultural awareness in international business?

It helps individuals understand and navigate diverse consumer preferences and business practices.

What economic decisions do individuals make daily?

Decisions such as selecting groceries to buy based on time and money constraints.

What is the purpose of the factors of production?

They are used to produce goods and services to satisfy consumer needs and wants.

How does inflation affect purchasing power?

It reduces the amount of goods and services that can be bought with a given amount of money.

What is the relationship between price and consumer demand?

Generally, as demand increases, prices tend to rise.

What is the effect of increased borrowing on demand?

It can lead to increased demand, which may cause prices to rise.

What defines a market economy?

A market economy is characterized by individual companies and consumers making decisions about production, known as capitalism.

What are the three main characteristics of capitalism?

1. Private Property, 2. Profit Motive, 3. Free, Competitive Marketplace.

What is the role of private property in a market economy?

Individuals have the right to buy and sell productive resources and own business enterprises.

What motivates individuals in a market economy?

The profit motive inspires individuals to take business risks and work hard for rewards.

What is a mixed economy?

A mixed economy is a blend of government involvement in business and private ownership.

What is socialism?

Socialism is a political and economic system where most basic industries are owned and operated by the government, controlled by the people.

What is privatization?

Privatization is the process of changing an industry from publicly owned to privately owned.

What factors influence a country's economic development?

Literacy level, technology, and agricultural dependency.

What is a less-developed country (LDC)?

An LDC is a country with little economic wealth and an emphasis on agriculture or mining.

What characterizes developing countries?

Developing countries are evolving from less developed to industrialized, showing improvements in education, technology, and industries.

What defines an industrialized country?

An industrialized country has strong business activity, advanced technology, and a highly educated population.

What is absolute advantage in foreign trade?

Absolute advantage exists when a country can produce a good or service at a lower cost than other countries.

What is comparative advantage?

Comparative advantage occurs when a country specializes in producing a good or service at which it is relatively more efficient.

What does Gross Domestic Product (GDP) measure?

GDP measures the output of goods produced within a country's borders, including items produced with foreign resources.

How does Gross National Product (GNP) differ from GDP?

GNP measures the total value of goods and services produced by a country's resources, including production in other countries.

What is balance of trade?

Balance of trade is the difference between a country's exports and imports.

What is a trade surplus?

A trade surplus occurs when a country exports more than it imports.

What is a trade deficit?

A trade deficit occurs when a country imports more than it exports.

What is foreign exchange rate?

The foreign exchange rate is the value of one country's money in relation to another country's money.

What is foreign debt?

Foreign debt is the amount a country owes to other countries.

What is the significance of literacy level in economic development?

Countries with better education systems provide more high-quality goods and services.

How does technology influence economic development?

Technology allows companies to create and deliver goods and services quickly, enhancing economic efficiency.

What is agricultural dependency?

Agricultural dependency refers to an economy that relies heavily on agriculture, lacking a manufacturing base for high-quality products.

What are the characteristics of industrialized countries?

Industrialized countries have high levels of industrialization, strong business activity, and high living standards.

What is the relationship between countries in a global economy?

Countries are interdependent, relying on each other for goods and services.

What is the impact of international business on economic measures?

International business uses various economic measures to evaluate and analyze the economic conditions of a country.

What is the role of consumers in a market economy?

Consumers influence production and prices through their choices in a free, competitive marketplace.