Factors of Production
What are land, labor, capital, and entrepreneurship?
These are the four key resources needed to make goods and services.
What is the balance of trade?
This measures the difference between what a country imports and exports.
What is a copyright?
This protects original creative work from being copied.
What is merchandise planning?
This is the process of deciding what products to sell and when.
What is international trade?
This is what countries do when they buy and sell goods with each other.
What is capital?
This factor of production includes physical tools, machines, and equipment.
What is an exchange rate?
This is used to compare the value of one country’s currency to another.
What are sweatshops?
These workplaces are known for poor wages, long hours, and unsafe conditions.
What is overstock and understock?
It helps retailers avoid these two major problems: running out of stock or having too much.
What is a good or service?
A country exports this when it sells a product to another country.
What is labor?
This factor represents the human effort involved in production.
What is a tariff?
This is a tax placed on goods coming into a country.
What is the Fair Labor Standards Act (FLSA)?
This law ensures fair wages and limits excessive work hours.
What is guessing what people will buy?
Predicting trends and demand is difficult because of this major challenge.
What is a trade barrier?
This kind of barrier, like a tariff or quota, can limit trade between countries.
What is land?
This is the natural resource component of production, including land and raw materials.
What is a quota?
This is a limit on the number of goods that can be imported.
What is the Federal Trade Commission (FTC)?
This agency makes sure advertisements and labels are truthful.
What is the buying step?
This step in merchandise planning involves buying the right products in the right amounts.
What are trade policies?
These are set by governments to control how much of a product can be traded.
What is entrepreneurship?
These individuals take risks to create businesses and innovate.
What is a country’s culture?
Understanding this can help avoid misunderstandings and improve international business relationships.
What is Corporate Social Responsibility?
This term describes when a company balances profit with doing good for people and the planet.
What are planning, buying, and selling?
These are the three steps of merchandise planning.
What is the converted price or adjusted cost?
This term describes how much a foreign product costs after adjusting for the exchange rate.