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51 Cards in this Set

  • Front
  • Back

Domestic business

Making,buying, and selling goods and services within a country.

International business

Includes all business activities needed to create, ship, and sell goods and services across national borders.

Global dependency

Exists when items that consumers need and want are created in other countries.


For the buyer, products bought from business in other countries.


Products sold in other countries.

Trade barriers

Restrictions that reduce free trade among countries.


The accepted behaviors, customs, and values of a society.


Refers to the limited resources available to satisfy the unlimited needs and wants of people.


The study of how people choose to use limited resources to satisfy their unlimited needs and wants.

Opportunity cost

The most attractive alternative given up when a choice is made.


The relationship between the amount of a good or service that businesses are willing and able to make available and the price.


The relationship between the amount of a good or service that consumers are willing and able to purchase and the price.

Market price

The point at which supply and demand cross.


An increase in the average prices of goods and services in a country.

Factors of production

Three types of resources used to produce goods and services.

Economic system

Method a country uses to answer the basic economic questions.


This process of changing an industry from publicly to privately owned.


Refers to a nation's transportation, communication, and utility systems.

Absolute Advantage

A situation that exists when a country can produce a good or service at a lower cost than other countries.

Balance of Trade

The difference between a country's exports and imports.

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.

Consumer Price Index

The monthly United States federal government report on inflation.

Foreign Debt

The amount a country owes to other countries.

Gross Domestic Product (GDP)

A measure of the output of a country within its borders, including items produced with foreign resources.

Gross National Product (GNP)

A measure of the total value of all goods and services produced by the resources of a country.

Body Language

A type of nonverbal communication where meaning is conveyed by facial expressions, upper and lower body movements, and gestures.

Class System

means of dividing the members of a cultural group into various levels.


The belief that the group is more important than the individual.

Cultural Baggage

The idea that you carry your beliefs, values, and assumptions with you at all times.

Culture Shock

A normal reaction to all of the differences of another culture.


The belief that one's culture is better than other cultures.

Extended Family

A group that consists of the parents, children, and other relatives living together.


The belief in the individual and his or her ability to function relatively independently.

Nonverbal Communication

Communication that does not involve the use of words.

Nuclear Family

A group that consists of a parent or parents and unmarried children living at home together.


A subset or part of a larger culture.


Absolute restriction on the import of certain products from certain countries.

Common Market

An agreement among countries that eliminates trade barriers, encourages investment, and allows workers to move freely across borders.


A political system in which all people have the opportunity to take part in marking the rules that govern them.

Economic nationalism

A policy of restricting foreign ownership of local companies and hindering foreign imports.


When a government takes control and ownership of foreign based assets and companies.

Free Trade Agreement

An arrangement between countries that eliminates duties and trade barriers on products trade among themselves.

Free Trade Zone

A designated area where products can be imported duty-free.

Home Country

The country in which a multinational enterprise is headquartered.

Host Country

The country in which a multinational enterprise is a guest.

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.

Political System

The means by which people in a society make the rules that control and influence their lives.


A government policy of protecting local or domestic industries from foreign competition.


A limit on the total number, quantity, or monetary amount of a product that can be imported from a given country.

Tax Holiday

Situation where a corporation does not pay corporate income taxes to a foreign government if it invests in their country.

Trade Embargo

A sanction imposed by a country against another country that stops all import-export trade with that country