International Trade
This is a tax on imports and exports
What is a tariff?
The market inside a country where goods and services are bought and sold by people and businesses living in that country.
What is a domestic market?
A country that is highly developed and has a high standard of living.
What is a MEDC, More Economically Developed Country?
Cooperating with another company to share resources or expand reach
Example: Alibaba allied with SoftBank in Japan/Southeast Asia.
What is a strategic alliance?
These types of challenges include differing payment systems and access to internet or mobile networks.
What are technology and digital access challenges?
A limit on the amount of goods and services imported into a country.
What is an import quota?
When a person or company from one country puts money directly into businesses or projects in another country.
What is a foreign direct investment (FDI)?
The total value of all goods and services produced in a country in one year.
What is GDP (Gross Domestic Product)?
Allowing a foreign company to produce or sell your product for a fee.
Example: Hisense allows the use of tech to be manufactured and sold by European retailers.
What is licensing?
These types of challenges include distribution and infrastructure limitations, along with different management styles
What are business practive challenges?
A situation where a country imports more goods and services than it exports.
What is a trade deficit?
Money given by the government to support businesses or industries, helping them keep prices low or to keep operating.
What are subsidies?
Not having enough money or resources to meet basic needs like food, clean water, shelter, clothing, and education.
What is Poverty?
Letting others operate under your brand using your business model.
Example: Li-Ning stores in shopping malls in Southeast Asia owned by independent entrepreneurs.
What is franchising?
These types of challenges include intellectual property issues and data protection laws.
What are legal and regulatory challenges?
A network of individuals and companies involved in creating a product and delivering it to the consumer.
What is a supply chain?
Activities companies do to create new products or improve existing ones using new technology and testing.
What is R&D (Research and Development)?
A measurement using GDP, literacy, and life expectancy to measure development for a country.
What is the Human Development Index (HDI)?
Building a new facility from scratch in a foreign country.
Example: CNOOC builds an oil refinery in Nigeria.
What is Greenfield Investment?
These types of challenges include different communication styles and following religious customs
What are cultural and social challenges?
Goods carried by a ship, an aircraft, or another vehicle
What is Cargo?
A business that is owned and run by the government.
What is a State-Owned Enterprise (SOE)?
Countries that are partially developed, they are often characterized by inequality; examples include China, Brazil, and India.
What is a Newly Industrialized Country (NIC)?
Setting up or acquiring a fully owned business in another country.
Example: Huawei established subsidiaries in Europe.
What is a wholly owned subsidiary?
These types of challenges include currency fluctuations and trade wars or sanctions.
What are political and economic challenges?