Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/58

Click to flip

58 Cards in this Set

  • Front
  • Back
business
all profit-seeking activities and services that provide goods and services necessary to an economic system
profits
represent the rewards for businesspeople who take risks involved in blending people, technology, and information to create and market want-satisfying goods and services.
Factors of production
refers to the four basic inputs: natural resources, capital, human resources, and entrepreneurship
Competitive differentiation
the unique combination of organizational abilities, products, or approaches that sets a company apart from competitors in the minds of consumers
Entrepreneur
a risk taker in the private enterprise system
Branding
the process of creating an identity in the consumer's mind for a good, service, or company
Relationship management
the collection of ongoing activities to maintain ongoing, mutually beneficial ties with customers and other parties
Partnership/strategic alliance
a partnership is an affiliation of two or more companies in order to help each other achieve a common goal. a strategic alliance is a partner ship created in order to give a strategic advantage to the companies involved
Outsourcing
using outside vendors to produce goods and fulfill services that were previously handled in-country or in-house
offshoring
the relocation of business processes to lower-cost locations overseas.
nearshoring
involving outsourcing production or services to locations near a firm's home base
Ethics
the standard of conduct and moral values governing actions and decisions in the workplace
Conflict of interest
exists when a businessperson is faced with a situation in which an action benefitting one group has the possibility with harming another
Integrity
adhering to deeply felt ethical principles in business situations
Whistle-blowing
an employee's disclosure to company officials, government authorities, or the media off illegal, immoral, or unethical practices
Code of conduct
formal statement that defines how the organization expects its employees to act.
Sexual harassment/sexism
sexual harassment referrs to the unwelcome or inappropriate sexual actions in the workplace. sexism referrs to discrimination against members of either sex, but primarily women.
Age discrimination
discrimination on the basis of age
Three-question test
used to resolve ethical problems
1) is it legal
2) is it balanced?
3) How does it make me feel?
Front-page-of-the-newspaper test
"how would this look on the front page of the newspaper?"
Utilitarianism
the consequences of an act determine whether it is right or wrong
Ethical egoism
"if it's good for me, then it must be ok"
Economics
The study of how a society uses scarce resources to produce and distribute goods and services
Macroeconomics
focus on economy as a whole; considers aggregate data from large groups of people, companies, or products
Microeconomics
focus on individual parts of economy, such as households or firms
Capitalism
system which rewards businesses for meeting the needs of customers
Mixed economy
government-owned firms operate alongside privately-owned firms
Socialism
government ownership and operation of major industries such as healthcare and communications
Command economy/communism
government controls determine business ownership, profits, and resource allocation to accomplish government controls rather than those set by individual businesses
Pure competition
a market structure, like that of small-scale agriculture, in which large numbers of buyers or sellers exchange homogeneous goods and no single participant has a significant influence on price
Monopolistic competition
a market structure in which large numbers of buyers and sellers exchange relatively well differentiated products, so each participant has some control over price.
Oligopoly
a market structure in which relatively few sellers compete and high startup costs form barriers to keep out new competitors
Monopoly
market structure in which a single seller dominates trade in a good or service for which buyers can find no substitute.
Productivity
the relationship between the goods and services produced in a nation each year and the inputs needed to produce them. Productivity = (output)/(input)
GDP/GNP
Gross Domestic Product - sum of all goods and services produced in a country during a specific time period
Inflation
rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production
Unemployment rate
usually expressed as a percentage of the workforce who are unemployed
Monetary policy
government’s programs for controlling the amount of money circulating in the economy and interest rates
Fiscal policy
government’s use of taxation and spending to affect the economy
Budget
organization's plan for how it will raise and spend money during a given time period
Surplus
when a company has an amount of a good that is greater than needed
Deficit
the budget shortfall (when expenses exceed revenues) in a given fiscal year.
National debt
the combined total of all previous deficits of a nation to foreign countries and manufacturers
Absolute and comparative advantage
absolute advantage - a country can sell a product at a lower price than any other country, or a country is the only country that can provide a given product.
Comparative advantage - lower prices result from every country specializing in products it can produce most readily and cheaply, trading them for products specialized in by other countries
Balance of trade
trade surplus vs. trade deficit
Balance of payments
the difference between total payments to other countries and total receipts from other countries
Trade surplus
Exports exceed imports
Trade deficit
Imports exceed exports
Exchange rate
value of one nations currency relative to the currencies of other countries
Tariffs
tax imposed on imported goods
Quotas
limit the amounts of particular goods that countries can import during specified time periods
WTO
World Trade Organization - 149-member international institution that monitors and promotes international trading. also solves international trading disputes
NAFTA
agreement between Canada, US, and Mexico to break down tariffs and trade restrictions
EU
European Union - 25-nation economic alliance
Multinational Corporation
Can sidestep restrictive trade and licensing restrictions by having headquarters in more than one country.
Can move their operations from one country to the next based on more favorable economic conditions.
Can tap into a vast source of technological expertise by drawing upon the knowledge of a global workforce
Devaluation
a drop in a currency's value relative to those of other nations or a fixed standard
Dumping
occurs when a foreign company charges a lower price that those of a country's domestic companies. it drives down the price of domestic companies products
Embargo
imposes a ban on importing a certain good or even a total halt of trading with a particular company.