Chapter 3
Economy
The process or system by which goods and
services are produced, sold, and bought in a country or region.
Adaption
The act of changing something or changing your behavior to make it suitable for a new purpose or situation
Consumer Price Index
A measure of the average change
over time in the prices paid by consumers for a
representative basket of consumer goods and services.
Price Competition
A type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars.
Retailers
Buy goods from wholesalers or directly from the manufacturers and resell to the consumer
Resources
A source of supply, support, or aid, especially
one that can be readily drawn upon when needed.
Quota
A set amount of sales or other actions that you must meet in a certain period
Exports
Goods and services manufactured or provided by businesses in one country and sold or traded in another
Monopoly
A market in which there are many buyers but only one seller.
Protectionism
The economic policy of restricting imports from other
countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations
Infrastructure
The basic physical systems of a business,
region, or nation and often involves the production of
public goods or production processes.
Joint Venture
A strategic partnership where two or more companies
develop a new entity in order to collaborate on a specific project or venture
Trademark
A brand that has exclusive legal protection for both its brand name and its design
Domestic Business
A business that sells its products only in its own country.
Recession
A business cycle contraction that occurs when
there is a period of broad decline in economic activity.
Entrepreneurship
The process of creating, developing,
and managing a new business venture with the aim of generating profits or creating value.
Foreign Direct Investment
Any investment from an individual or firm that is located in a foreign country into a country
Private Enterprise
Economic system that allows individuals to pursue their own interests without undue governmental restriction
Private Sector
Businesses not associated with government agencies.
Nonprofit Organization
An organization whose goals do not include making a personal profit for its owners or organizers
Gross National Product (GNP)
Total market value of the final
goods and services produced by a nation's economy
during a specific period of time.
North American Free Trade Agreement
The elimination or reduction of barriers to trade and investment between the United States, Canada, and Mexico
European Union
An economic and political confederation of European
nations which share a common foreign and security policy and co-operate on justice and home affairs
Derived Demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Balance of Trade
Time between a
country's imports and exports of goods and services, usually expressed in the unit of currency of a particular country or economic union