International Commerce Overview

The ability of a company to produce goods or services at a lower cost per unit as production volume increases.

International trade allows businesses to spread out their investments across multiple countries, reducing the risk of economic downturn in any single location.

International trade can promote cultural exchange and understanding by bringing people from different backgrounds together.

Increased international trade can lead to the creation of new jobs in various sectors, both directly related to trade and indirectly in supporting industries.

Import taxes levied by governments on goods entering a country. They make imported goods more expensive compared to domestic products.

A group of countries that agree to lower trade barriers and promote economic integration between them.

Agreements between two or more countries that involve reciprocal lowering of tariffs on goods traded between them.

Trade agreements that allow preferential duty-free or reduced duty access to imported products from certain developing countries.

The shared values, beliefs, customs, and behaviors of a society or group of people.

The ability to effectively communicate across cultural boundaries.

The formal hierarchy and structure within an organization, which can vary significantly across cultures.

The expected behaviors and norms within a workplace, which can impact how business is conducted.

The ways in which people negotiate and reach agreements, which can be influenced by cultural factors.

The importance of being on time, which can vary significantly across cultures.

The dynamics of how groups interact and make decisions, which can be influenced by cultural values.

The way emotions are expressed and perceived, which can impact business interactions.

A plan for entering a new market by considering target market, competition, and company's strengths and weaknesses.

Companies consider which countries contain their target market and how they would market their product to this segment.

Companies consider sourcing the product from their current location or working with a manufacturer overseas.

Companies decide whether they'll enter the market independently or partner with local businesses.

A set of voluntary standards to help companies implement corporate social responsibility.

Companies that prioritize social and environmental responsibility.

Companies provide training to employees to advance their careers.

Companies use renewable energy sources to power their operations.

Building a new facility in a foreign market, buying land and resources, and hiring local staff, offering potential for high growth and compliance with local regulations, but also high risks and costs.

A project where a company provides a fully operational facility ready for the client, just like turning a key to unlock a working building.

The global marketplace where currencies are bought and sold, determining exchange rates for different countries.

The immediate exchange of currencies at the current market price.

An agreement to exchange currencies at a predetermined price on a future date.

A regulated agreement to exchange currencies at a set price on a fixed date.

Buying a currency with the expectation that its value will rise.

Selling a currency with the expectation that its value will decrease, allowing you to buy it back later at a lower price.

Every Forex transaction involves exchanging one currency for another. It's expressed as a pair, showing the base currency (bought) and quote currency (sold). For example, USD/GBP = 1.15 means you'll pay 1.15 USD to buy 1 GBP.

The price a trader pays to buy a currency pair. Think of this as the "retail price" paid to acquire the currency.

The price a trader receives when selling a currency pair. This is the "wholesale price" you're offering for the currency.

The difference between the ask (buying price) and the bid (selling price). It represents the cost of trading a currency pair.

The buying and selling of goods and services over the internet. It can happen anytime, anywhere, and allows businesses to reach a wider audience.

The convenience of being able to buy or sell products and services 24/7, regardless of location. It allows you to generate sales without being physically present.

The ability to reach a global market and sell products to people around the world. It allows businesses to expand their customer base and increase their potential sales.

A business model where companies sell their products directly to consumers through their own website or online store, without the need for an intermediary.

Ecommerce transactions where one business sells products or services to another business directly.

A type of ecommerce where businesses sell products or services to government agencies.

Ecommerce model where consumers sell products or services to other consumers, typically through platforms like digital marketplaces.

An online marketplace that connects buyers and sellers of goods and services, primarily for businesses.

A company that sells customer relationship management (CRM) software to other businesses.

A mobile app that connects buyers and sellers of used clothing.

Another mobile platform where people can buy and sell used clothing, particularly focused on fashion.