intro to int. business Flashcards
domestic transaction
selling of items produced in the same country
international transacation
selling of items produced in other countries (these contribute to global economy)
benefits of global markets
access to more large markets, cheaper labour costs, increased quality of goods, increased quantities of goods, connections/relationships with other countries
5 ps of international business
- product - what goods and services it produces.
- price - cost of producing goods and services varies from country to country.
- promotion - incentives for consumers
- proximity - more advantageous and profitable for some businesses to sell products and services to consumers near a neighbouring country’s border rather than to its domestic customers
- preference - Consumers often purchase foreign goods and services based on their reputation and specialization, even though similar products are produced domestically
offshore outsourcing
occurs when businesses decide to produce all or part of their goods in countries where labour costs are lower.
Sustainable development
process of developing land, cities, businesses, and communities that meet the needs of the present generation without compromising those of the future.
Environmental degradation
the consumption of natural resources, such as trees, water, earth, habitat, and air, faster that nature can replenish them.
Tariffs
(also called customs duties) are a form of tax on certain types of imports
excise tax
a tax on the manufacture, sale, or consumption of a particular product within a country.
Non-tariff barriers
controls or standards for the quality of imported goods set so high that foreign competitors cannot enter the market.
eg. licenses, quotas
trade deficit
a trade deficit in which a country pays more for imports than it earns from exports
trade surplus
a trade surplus in which a country earns more from exports than it pays for imports
Five Ways to Offset the Risk of Importing
- Measure consumer interest.
- Use care when selecting foreign suppliers.
- Learn about a foreign partner’s culture.
- Carefully scrutinize the purchase agreement and then sign it.
- Check goods for quantity and quality upon arrival.
direct exporting
exporting a product directly to an importer without using an intermediary.
indirect exporting
exporting a product to an intermediary who then conveys the product to the importer. Larger established companies usually use direct exporting while newer ones utilize indirect exporting.
Define International Business
refers to any commercial transaction that involves the exchange of goods, services, technology, capital, or knowledge across national borders.
What are five ways that a business could be considered an international business?
- exporting
- importing
- operating in many countries
- hiring/sourcing help from foreign countries
- partnering with other businesses from foreign countries
International businesses have vast scales of operation. True or false?
true
List and describe 7 main characteristics of international business.
- large scale of operations
- advanced technology
- international competition
- currency exchange
- regulations and laws
- global networking
- cultural awareness
What is Trade?
exchange of goods/services/captial between businesses/countries
What is self sufficiency?
+ How were Canada’s aboriginal people self-sufficient?
+ We know self-sufficiency is Possible, BUT is it Desirable?
ability of an individual/business to meet all basic needs without relying on others
+ aboriginal people were self sufficient by relying on natural resources for food, shelter, clothes (sustainable)
+ it is not desirable because it can lead to limited resources, inefficiency, lack of specialization, and can hinder economic growth
What are communes?
communities that share resources and responsibilities
What did early trade in Canada look like?
+ What was the result of trade between native groups in Canada?
involved barter systems and non-monetary exchanges of goods/services (eg. fur, tools, crop)
+ trade improved relationship, facilitated cultural exchange, and encouraged specialization
Describe early trade during the Roman Empire.
Describe what trade was like during feudal (old fashioned) times
Describe the relationship between Guilds and Trade
romans established extensive trade networks in asia, europe, africa, exchanging goods like olive oil, wine, textiles, spices.
during feudal times, local trade was dominant, bartering, less international trade because of transportation barrier
guilds were organizations of artisans that regulated trade by setting regulations, controlled prices, and protected local economy
