International Business Key Terms

Study Notes

International Business Key Terms

International Transactions: Business activities involving the exchange of goods and services across international borders.
Domestic Transactions: Business activities that occur within a country's borders.
Foreign Trade: The exchange of goods and services between countries.
Balance of Trade: The difference between a country's exports and imports.
Imports: Goods and services purchased from foreign countries.
Exports: Goods and services sold to foreign countries.
Trade Surplus: When a country's exports exceed its imports.
Trade Deficit: When a country's imports exceed its exports.
Direct Exporting: Selling goods and services directly to foreign markets.
Indirect Exporting: Using intermediaries (agents or distributors) to sell goods and services internationally.
Currency/Exchange Rate: The value of one currency in relation to another, impacting international trade.
Tariffs: Taxes imposed on imported goods to make them more expensive and protect domestic industries.
Excise Tax: A tax on certain goods produced or sold within a country.
Non-Tariff Barriers: Trade restrictions other than tariffs, like quotas or standards.
Global Product: A product marketed similarly in different countries.
Global Economy: The interconnected economies of countries worldwide.

International Business Concepts

Social Costs: Costs that affect society as a whole, not just individual businesses (e.g., environmental pollution).
Offshore Outsourcing: Relocating a business function (like manufacturing) to a foreign country.
Transnational: Companies operating globally, integrating operations across different countries.
International Labour Organization (ILO): A UN agency setting international labor standards.
Sustainable Development: Economic growth without depleting natural resources.
Environmental Degradation: Deterioration of the environment through resource depletion and pollution.
Landed Cost: The total price of a product, including shipping, taxes, and tariffs, at the buyer's location.
Trade Agreement: A treaty between two or more countries to establish trade relations.
GATT (General Agreement on Tariffs and Trade): An international treaty aiming to reduce trade barriers.
WTO (World Trade Organization): An intergovernmental organization regulating international trade.
NAFTA (North American Free Trade Agreement): A trade agreement between the USA, Canada, and Mexico.
Bilateral Agreement: A trade agreement between two countries.
Regional Trade Agreement: An agreement among countries in a region to enhance trade.
Trading Bloc: A group of countries with a trade agreement.
G8: A group of eight major developed economies (Canada, France, Germany, Italy, Japan, Russia, UK, US).
Global Dependency: The reliance of countries on each other for goods, services, and markets.

Additional International Business Details

Protection of intellectual property rights is a benefit of trade agreements.
Benefits of NAFTA include lower consumer prices, increased exports, and economic growth in member countries. Concerns include job losses in some sectors, environmental degradation, and labor exploitation.
Cultural factors in international business include understanding local customs, communication styles, and legal environments.
Study tips involve flashcards, study groups, summaries, and case studies.