International Business - MGMT 350

A collection of vocabulary flashcards based on key concepts from the MGMT 350 International Business lecture.

Economies of Scale

Cost reductions associated with large-scale production, spreading fixed costs over a large volume.

First-Mover Advantage

Economic and strategic advantages that accrue to early entrants into an industry, allowing them to capture scale economies ahead of later entrants.

Positive-sum game

A situation where trade can increase the variety of goods and decrease average costs for consumers.

Specialization

The process by which a nation focuses on producing certain products, allowing for scale economies and lower production costs.

Trade Implication

Nations may benefit from trade even without differences in resource endowments, by enhancing product variety and lowering costs.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, which can be created by the first-mover advantage.