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51 Cards in this Set
- Front
- Back
Domestic business |
Making,buying, and selling goods and services within a country. |
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International business |
Includes all business activities needed to create, ship, and sell goods and services across national borders. |
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Global dependency |
Exists when items that consumers need and want are created in other countries. |
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Imports |
For the buyer, products bought from business in other countries. |
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Exports |
Products sold in other countries. |
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Trade barriers |
Restrictions that reduce free trade among countries. |
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Culture |
The accepted behaviors, customs, and values of a society. |
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Scarcity |
Refers to the limited resources available to satisfy the unlimited needs and wants of people. |
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Economics |
The study of how people choose to use limited resources to satisfy their unlimited needs and wants. |
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Opportunity cost |
The most attractive alternative given up when a choice is made. |
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Supply |
The relationship between the amount of a good or service that businesses are willing and able to make available and the price. |
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Demand |
The relationship between the amount of a good or service that consumers are willing and able to purchase and the price. |
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Market price |
The point at which supply and demand cross. |
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Inflation |
An increase in the average prices of goods and services in a country. |
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Factors of production |
Three types of resources used to produce goods and services. |
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Economic system |
Method a country uses to answer the basic economic questions. |
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Privatization |
This process of changing an industry from publicly to privately owned. |
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Infrastucture |
Refers to a nation's transportation, communication, and utility systems. |
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Absolute Advantage |
A situation that exists when a country can produce a good or service at a lower cost than other countries. |
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Balance of Trade |
The difference between a country's exports and imports. |
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Comparative Advantage |
A situation that exists when a country specializes in the production of a good or service at which it is relatively more efficient. |
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Consumer Price Index |
The monthly United States federal government report on inflation. |
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Foreign Debt |
The amount a country owes to other countries. |
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Gross Domestic Product (GDP) |
A measure of the output of a country within its borders, including items produced with foreign resources.
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Gross National Product (GNP) |
A measure of the total value of all goods and services produced by the resources of a country.
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Body Language |
A type of nonverbal communication where meaning is conveyed by facial expressions, upper and lower body movements, and gestures.
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Class System
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means of dividing the members of a cultural group into various levels.
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Collectivism |
The belief that the group is more important than the individual.
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Cultural Baggage |
The idea that you carry your beliefs, values, and assumptions with you at all times. |
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Culture Shock |
A normal reaction to all of the differences of another culture.
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Ethnocentrism |
The belief that one's culture is better than other cultures. |
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Extended Family |
A group that consists of the parents, children, and other relatives living together.
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Individualism
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The belief in the individual and his or her ability to function relatively independently.
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Nonverbal Communication
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Communication that does not involve the use of words. |
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Nuclear Family |
A group that consists of a parent or parents and unmarried children living at home together.
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Subculture |
A subset or part of a larger culture. |
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Boycott
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Absolute restriction on the import of certain products from certain countries.
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Common Market |
An agreement among countries that eliminates trade barriers, encourages investment, and allows workers to move freely across borders.
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Democracy |
A political system in which all people have the opportunity to take part in marking the rules that govern them.
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Economic nationalism |
A policy of restricting foreign ownership of local companies and hindering foreign imports.
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Expropriation |
When a government takes control and ownership of foreign based assets and companies.
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Free Trade Agreement |
An arrangement between countries that eliminates duties and trade barriers on products trade among themselves.
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Free Trade Zone |
A designated area where products can be imported duty-free.
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Home Country
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The country in which a multinational enterprise is headquartered.
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Host Country
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The country in which a multinational enterprise is a guest.
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MFN Status |
Designation that allows a country to export in to the granting country under the most favorable trade conditions that the importing country offers to any of its trading partner.
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Political System |
The means by which people in a society make the rules that control and influence their lives.
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Protectionism |
A government policy of protecting local or domestic industries from foreign competition.
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Quota
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A limit on the total number, quantity, or monetary amount of a product that can be imported from a given country.
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Tax Holiday
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Situation where a corporation does not pay corporate income taxes to a foreign government if it invests in their country.
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Trade Embargo
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A sanction imposed by a country against another country that stops all import-export trade with that country |