4.2: Keywords

global consumer culture

global culture where social status, values, and activities are centred on the consumption of goods and services

offshoring

moving jobs to other countries

outsourcing

moving jobs to other organisations

pull factors

factors enticing firms into new markets

push factors

factors in the existing market encouraging an organisation to seek international opportunities

risk

probability of a bad event multiplied by negative impact

saturation

point when most customers who want to buy a product already have it, limited sales growth

demonsetisation

removing the value of a note or coin so that it is no longer able to be used as money

disposable income

amount of money a person has left over for consumption and savings

open economy

where a country allows the free movement of goods, services, capital and labour into and out of the economy

reshoring

bringing production back home after using foreign production facilities for a period of time

brand recognition

how people identify a brand by its features and attributes

copyright

legal right that grants the creator of an original work the sole right to determine and decide whether, and under what conditions, this original work may be used by others

franchise

a business (the franchisor) allows another operator (the franchisee) to trade under their name

global mergers

two or more businesses from different countries join together and operate as one

intellectual property (IP)

a product that is a creation of the mind that the law protects from unauthorised use by others

joint venture

two or more businesses co-operate to share the costs and profits from a business venture

licensing

contract with another firm to use its intellectual property or to produce its product or service in return for a fee

pricing power

effect that a change in a firm's product price has on the quantity demanded of that product

appreciation

rise in value of a country’s currency

competitive advantage

advantage one firm has over its competitors in providing a certain product q

depreciation

loss in value of a country’s currency

devaluation

adjustment of the value of a currency in relation to other currencies to make it weaker

economic risk

risk that future cash flows will change due to unexpected exchange rate changes

international competitiveness

extent to which a business or country can compete successfully against rivals

revaluation

adjustment of value of a currency in relation to other currencies to make it stronger

skills shortages

where potential employees don’t have skills demanded by employers