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58 Cards in this Set
- Front
- Back
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Business
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The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
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P&L
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profit and loss statement- income minus expenses
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Resources that managers manage:
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Money, Men, Materials, Info Resources
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Types of Businesses
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Manufacturers, Services, Marketing Intermediaries (retail)
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Stakeholders
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All the diff. people or groups of people that are affected by the policies and decisions made by an organization. Owner decides to buy less fabris=affects her profits=Customers have less options=employees have to deal with unhappy customers=make less tips and sales
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Economics
Micro Macro |
Study of how wealth (anything of value) is created and distributed
micro-individuals and businesses macro-national/global |
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economy
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system through which a society creates and distributes wealth
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Factors of production
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Capital Land Labor Entrepreneurship
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Capitalism
(Invisible Hand) |
System in which indiv. own and operate the majority of businesses that provides goods and services.
Inv. Hand-Limited role of gov't |
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Mixed Economy
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US=both capitalism and socialism
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Role of Gov't in Business
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Labor=Wages, working conditions
Safety in products, foods Military Transportations/airspace Education |
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Command Economies
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Gov't controls everything
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GDP
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total value of all goods and services produced in a country during a given period of time
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consumer confidence index
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how do we feel about the economy
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consumer price index
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measures changes in prices of a market basket of goods purchased by an urban consumer
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producer price index
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cost of goods to the wholesaler
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types of unemployment
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frictional, seasonal, cyclical, structural
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S+P 500
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stock prices
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m2 money supply
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more $ in circulation
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great depression 1929
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Stock market crash
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Works Progress Act
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Gov't created jobs under FDR in roads, transportation.
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Social Security
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$ from payroll. one lump sum payment until 1940 then became monthly
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Domestic System
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"farmed out"
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Factory System
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brought workers together. 1790 Samuel Slater textile mill in rhode island
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Barter System
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Exchange good other than money
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offshoring
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over seas outsourcing
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Absolute Advantage
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can produce one item better than any other NATION. (saudi arabia with oil) due to natural resources
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Comparitive Advantage
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ability to produce a specific product more efficiently than any other PRODUCT.
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exporting/importing
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E goes out I comes in
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Balance of trade
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total calue of a nations exports minus the total value of its imports over some period of time. Export-Import=0
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Trade Deficit/Positive Balance of Trade/Favorable Balance
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When imports are greater than exports
Favorable Balance-Exports are greater |
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Balance of Payments
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Total flow of money into a country minus the total flow going out over a period of time
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Import Duty (Tariff)
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tax levied on a particular foreign product entering a company
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Revenue Tariffs
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imposed to generate income for gov't
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Protective Tariff
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imposed to pretect a domestic industry by making imports more expensive
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dumping
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exportation of large quantities of a product at a price lower than that of the same product in the home market
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world trade organization (WTO)
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sets fines for dumping
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non-tariff barriers
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nontax measures imposed by a government to favor domestic over foreign suppliers
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import quota
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limit on the amount of a particular food that may be imported during a given time
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embargo
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complete halt to trading with a particular nation or in a particular product (Cuba, NK, Iran)
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foreign exchange control
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Restriction on amount of foreign currency that can be purchased or sold
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Currency devaluation
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reduction of the value of a nations currency relative to the currencies of other nations
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Strategic alliances
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partnerships formed to create competitive advantage on a worldwide basis
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trading company
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firm that prove a link between buyers and sellers in different countries(buys product)
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countertrade
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an international barter transaction. Avoids restrictions on converting domestic currency to foreign currency
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multination enterprise
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a firm that operates on a worldwide scale (walmart)
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financing international business
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exim bank, MDP, IMF
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MDP (multilateral development bank)
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provides loans to developing countries to let them grow
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International monetary fund (IMF)
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international bank that makes short term loans to developing countries experiencing balance of payments deficits
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General agreement on tariffs and trade (GATT)
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organization of 132 nations dedicated to reducing or eliminating tariffs and other trade barriers
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Most-Favored Nations Status (MFN)
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each member of GATT was to be treated equally by all other members
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WTO
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successor to GATT, established in uruguay round, oversees GATT provisions, has judicial powers
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economic community
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an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies (Ex. European Union)
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NAFTA (north american free trade agreement)
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an economic community. US, Canada, Mexico
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Methods of Entering international business
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licensing, export/import
exim bank joint ventures totally owned facilites strategic alliances countertrade trading companies countertrade multination enterprise |
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Exim Bank
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Export/import bank-helps american comanies finance purchases overseas
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joint ventures
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-a partnership formed to achieve a specific goal or to operate for a specific period of time
advantage-immediate market knowledge and access, reduced risk, control over the product attributes disadvantages-complexity of establishing agreements across national borders, high level of commitment required of all parties involved |
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Totally owned facilities
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production and marketing facilities in one or more foreign nations
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