Global Business

Intellectual

Technical knowledge or creative work that an individual or company has developed

Retailer

A business that sells directly to consumers

Extracting

A company that takes raw materials from nature or grows products

Currency future

A contract that allows a buyer the option to purchase a foreign currency sometime in the future at today's rate

Comparative Advantage

A country specialized in the production of a good or service at which it is relatively more efficient

Business plan

A formal written guide used to start and operate a business

Litigation

A lawsuit brought to enforce the rights of a person or organization or to seek a remedy to the violation of their rights

Common Law

A legal system that relies on the accumulation of decisions made in prior cases

Subculture

A subset of a larger culture

Exchange rate

Amount of currency of one country that can be traded for one unit of currency of another

Account payable

An amount owed to the supplier

Trade credit

Buying or selling on an account

Bond

Certificate representing money borrowed by a company over a long period of time, usually between 5 and 30 years

Interest rate

Cost involved when individuals, businesses, and other countries borrow money

Less-developed country

Country with little economic wealth and an emphasis on agriculture or mining

Promissory note

Document that sets a promise to pay a set amount by a certain date

Developing countries

Evolving from less developed to industrialized

Capital project

Expensive long term financial activity

Consumer Price Index

Federal government report published by the Bureau of Labor Statistics, measures inflation in the US

Import

Products bought from businesses in other countries

Cultural Baggage

Idea that you carry your beliefs, values, and assumptions with you at all times

Trademark

Is a distinctive name, symbol, word, picture, or combination of these that identifies its services or product

Contract

Is a legally enforceable agreement between two or more persons either to do or not to do certain things or thing

Patent

Is the exclusive right of an inventor to make, sell, and use a product or process

Balance sheet

Is the financial document that reports a company's assets, liabilities, and owners equity

Budget

Is used as a financial tool to estimate funds and plans for spending those funds

Mediation

Is used to resolve a conflict, a neutral third party attempts to reconcile the viewpoints but the parties are not bound to agree to the recommendation

Arbitration

Is used to resolve a conflict, a neutral third party makes a binding decision

Statutes

Laws that have been enacted by a body of lawmakers such as US Congress

Gross Domestic Product (GDP)

Measures the output of goods that a country produces within is borders

Gross National Product (GNP)

Measures the total value of all goods and services produces by a the resources of a country

Hard currency

Monetary unit that is freely converted into other currencies is called

Opportunity cost

Most attractive alternative given up when a voice is made

Culture Shock

Normal reaction to all the differences of another culture

Infrastructure

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

Scarcity

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

Trade barriers

Restrictions that reduce free trade among counteies

Culture

The accepted behaviors, customs, and values of a society

Ethnocentrism

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

Collectivism

The belief that the group is more important than the individual

Balance of Trade

The difference between a country's imports and exports

Gross profit

The difference between the cost of an item and the price for which the business can sell that item

Negligence

The failure of a responsible party to follow standards of due care

Electronic funds transfer

The movement of payments through banking computer systems, used by companies and individuals

Supply

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

Demand

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

Variable

These costs are business expenses that change in proportion to the level of production

Fixed

These costs are business expenses that do not change as the level of production changes

Telecommuting

Using a computer and other technology to work at home instead of at a company office or factory is known as

Absolute Advantage

When a country can produce a good or service at a lower cost than other countries