Chapters 1-4 Understanding Business 10th ed and 2 others – Flashcards
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Buying products from another country.
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Importing
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Selling products to another country.
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Exporting
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Movement of goods and services among nations without political or econ barriers.
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Free Trade
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When a country has a monopoly on producing a specific product.
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Absolute Advantage
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Total value of a nation's exports compared to its imports.
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Balance of Trade
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Unforable balance of trade; value of a country's imports exceeds that of its exports.
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Trade Deficit
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Selling products at lower prices than those charged in producing country.
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Dumping
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A global strategy in which a firm allows a foreign company to produce its product in exchange for a fee.
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Licensing
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Arrangement where someone with a good idea for a business sells the rights to use the business name and sell a product.
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Franchising
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Partnership in which 2 or more companies join to undertake a major project.
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Joint Venture
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Buying of permanent property and businesses in foreign nations.
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Foreign Direct Investment
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A company owned in a foreign country by another company.
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Foreign Subsidiary
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An organization that manufactures and markets products in different countries and has multinational stock ownership and multinational management.
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Multinational Corporation
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Tax imposed on imports.
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Tariff
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Limit on number of products in certain categories that a nation can import.
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Import Quota
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Complete ban on imports/exports with a certain country.
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Embargo
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1948 agreement that formed an internationl forum for negotiating mutal reductions in trade restrictions.
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General Agreement on Tariffs and Trade (GATT)
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International organization that replaced the former and was assigned the duty to mediate trade disputes.
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World Trade Organization (WTO)
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Free-trade area among US, Canada, and Mexico.
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North American Free Trade Agreement (NAFTA)
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the standards or rules accepted by a society governing proper conduct
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ethics
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the obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization
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corporate social responsibility
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Dimension of social responsibility that includes charitable donations.
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corporate philanthropy
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an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends
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insider trading
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Study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals
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Economics
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A part of economics that looks at the operation of a nation's economy as a whole
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Macroeconomics
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The part of economics that looks at the behavior of people and organizations in particular markets
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Microeconomics
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A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.
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Invisible Hand
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Economic system in which all or most of factors of production and distribution are privately owned and operated for profit
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Capitalism
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The quantities of products that manufacturers or owners are willing to sell at different prices at a specific time.
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Supply
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The quantity of products that people are willing to buy at different prices at a specific time.
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Demand
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The price determined by supply and demand.
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Market Price
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Market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product
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Perfect Competition
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Market situation in which a large number of sellers produce products that are very similiar but that are perceived by buyers as different
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Monopolistic Competition
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A form of competition in which just a few sellers dominate the market
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Oligopoly
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A market in which there is only one seller for a product or service.
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Monopoly
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An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be distributed among the people
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Socialism
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Loss of the best and brightest people to other countries
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Brain Drain
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An economic and political system in which the state makes almost all economic decisions and owns almost all of the major factors of production.
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Communism
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Economic system in which the market largely determines what goods and services get produced, who gets them, and how the economy grows.
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Free-Market Economies
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Economic system in which the government largely decides what goods and services will be produced, who gets them, and how the economy grows.
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Command Economies
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Economic system in which some allocation of resources is made by the market and some by the government.
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Mixed Economies
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The total value of final goods and services produced in a country in a given year.
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Gross Domestic Product (GDP)
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Number of civilians at least 16 years who have been trying to find a job within the prior four weeks.
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Unemployment Rate
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General rise in the prices of goods and services over time.
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Inflation
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A situation in which prices are declining
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Deflation
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Periodic rises and falls that occur in all economies over time.
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Business Cycles
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Two or more consecutive quarters of decline in the GDP.
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Recession
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A severe recession.
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Depression
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Any activity that seeks to provide goods and services to others while operating at a profit.
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business
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The amount of money a business earns above and beyond what it spends for salaries and other expenses.
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profit
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A person who risks time and money to start and manage a business.
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entrepreneur
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The total amount of money a business takes in during a given period by selling goods and services.
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revenue
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When a business's expenses are more than its revenues.
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loss
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The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
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risk
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The amount of goods and services people can buy with money they have.
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Standard Of Living
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The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy.
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Quality Of Life
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All the people who stand to gain or lose by the policies and activities of a business.
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stakeholders
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An organization whose goals do not include making a personal profit for its owners or organizers.
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Nonprofit Organization
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The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.
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Factors Of Production
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The surrounding factors that either help or hinder the development of business.
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Business Environment
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Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive.
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technology
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The amount of output you generate given the amount of input (e.g., hours worked).
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productivity
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The buying and selling of goods over the internet.
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e-commerce
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An electronic storage file where information is kept; one use of databases is to store vast amounts of information about consumers.
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database
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Giving frontline workers the responsibility, and freedom to respond quickly to customer requests.
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empowerment
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The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.
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demography
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Tangible products such as computers, food, clothing, cars, and appliances.
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goods
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Intangible products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism.
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services
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assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations
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outsourcing
