Types of Business Structures
This type of business structure allows two companies to join resources while remaining independent.
What is a Strategic Alliance?
International trade provides companies access to larger markets, which can increase this aspect of their sales.
What is Quantity?
This “P” emphasizes how consumers favor products based on their reputation or specialized nature.
What is Preference?
This term refers to the taxes added to imported goods to protect domestic markets.
What is Tariff?
Global dependency means consumers in one country demand goods produced in another, highlighting this type of economic reliance.
What is Global Dependency?
An arrangement where a company relocates operations abroad to reduce costs.
What is Offshoring?
This is often the most common reason consumers buy internationally produced goods.
What is Cheaper Labour?
An international business approach where products are advertised online across different countries.
What is Promotion?
Name a hidden cost of international trade linked to workforce exploitation.
What is Human Rights Abuse?
This term describes the understanding of a country’s customs, beliefs, and business practices.
What is Culture?
This type of international business structure involves one company purchasing another to combine resources.
What is a Merger?
A type of labor that can reduce costs and encourage international consumer purchases.
What is Cheap Labor?
This “P” highlights the cost-effectiveness of producing goods in one country and selling them in another.
What is Price?
This type of barrier restricts market entry by setting very high product quality standards for imports.
What is a Non-Tariff Barrier?
Nonverbal cues, like body language, play a crucial role in international trade and are part of this type of communication.
What is Nonverbal Communication?
This type of business structure operates in multiple countries, often providing jobs and training abroad but with potential local drawbacks.
What is a Multinational Corporation?
This advantage lets companies reach a larger market by selling a standardized item globally.
What is a Global Product?
This “P” refers to the advantage of selling goods to nearby countries to reduce shipping costs.
What is Proximity?
This term describes the total cost to import goods, including vendor, transport, and duty expenses.
What is Landed Cost?
Successful trade relies on understanding differences in this set of beliefs, values, and practices among countries.
What is Culture?
This structure allows for global expansion through selling rights to a business model and brand across borders.
What is an International Franchise?
Access to this type of economic resource through international trade benefits companies in natural, human, and capital categories.
What is Access to Resources?
Consumers’ favorable view of certain foreign-made products, like Swiss watches, demonstrates this “P.”
What is Preference?
Economic instability in international trade may result from fluctuating rates of this.
What is Currency?
This term describes the relationship where countries depend on each other for goods not locally available.
What is Global Dependency?