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COMM 103 Chapter Notes -Foreign Direct Investment, Greenhouse Gas, Gross Domestic Product


Department
Commerce
Course Code
COMM 103
Professor
Gregory Libitz

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Chapter 1
1. Commercial Endeavours: the markets the organization serves, the products & services
it offers, & the needs is professes to meet in the marketplace
2. Employee Interaction: the value-creating skills and organization’s employees bring to
the marketplace. The success of many businesses lies with the specialized skills that
exist within its labour force
3. Organizational Efficiency and Structure: a reflection of the complexities of the
business activities that circulate within an organization
4. Business: the mission-focused activities aimed at identifying the needs of a particular
market(s), & the development of a solution to such needs through the acquisition &
transformation of resources into goods &services that can be delivered to the
marketplace as a profit
5. Assets: the infrastructure & resource base of the organization
6. Labour: the human resources of the business
7. Capital: the money needed by an organization to support asset-based expenditures,
meet operating cash requirements,& invest in the development of new products &/or
services which the organization desires to introduce into the market
8. Managerial Acumen: the foresight, drive, knowledge, ability, decision-making
competency, & ingenuity of the organization’s key individuals- its owners or top-level
managers
9. Business Model (System):the operational platform or structure that a business uses to
generate revenue and profit
10. Competitive Advantage: an advantage an organization has over its competitors that
enables it to generate more sales, achieve greater margins, achieve a lower cost base
or attract & retain more customers
11. For-profit companies: organizations whose overarching objective is profitability and
wealth creation on behalf of their shareholders & stakeholders
12. Not-for-profit organizations: organizations whose overarching objective is not
profitability & wealth creation but to deliver services to the people, groups, &
communities that they serve via a model of collective interest & social goal achievement
13. Stakeholders: individuals/groups/organizations that have a direct/indirect relationship
with an organization, & that can be impacted by its policies, actions, & decisions.
Stakeholders could include customers, suppliers, government, employees, etc.
14. Profit: the “bottom line” result an organization has realized for an identified, immediate
period of time. Total Revenue Total Expenses
15. Profitability: measures how well a company is using its resources over a specific period
of time to generate earnings relative to its competitors
16. Stockholders: any person/company/organization that owns at least one share of stock
in a specific company
17. Value Proposition: a statement that summarized whom a product/service is geared
toward & the benefits the purchaser will realize as a result of using the product

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18. Market Segment: a portion of the market that is deemed to posses unique
characteristics businesses can target in order to generate a preference for their products
and/ or services
19. Asset-based expenditures: expenditures for the purchase of assets required by a firm
in order to support the company’s business operations, & which contribute to the firm’s
ability to earn a profit
20. Operating expenditures: expenses incurred as a result of a company performing its
normal business operations
21. Strategy: the development of plans & decisions that will guide the direction of the firm &
determine its long-term performance
22. Tactics: the immediate term actions which a firm executes in order to meet the short-
term objectives set forth in the current planning cycle
Chapter 2
1. G7/8: a quasi-organization comprising the world’s major fully developed economies.
Including U.S., Japan, Germany, Great Britain, France, Italy & Canada, later Russia.
Meet once a year to discuss major economic, political & societal issues challenging the
global marketplace. China attended recent meetings
2. Comparative Advantage: the ability of a country to produce/supply goods or services at
a lower cost than other countries or to possess resources or unique services that are
unavailable elsewhere
3. Foreign Direct Investment (FDI): occurs when a company or individual from one
country makes an investment into a business within another country. This investment
can reflect the physical ownership of productive assets or the purchase of a significant
interest in the operations of a business
4. Law of Supply and Demand: refers to the ability of the market, independent external
influences, to determine the price for which a product or service will be bought & sold
5. Open System: an economic system that adheres to the principles of economic freedom:
the law of supply & demand, full & open access to the principles of private ownership,
entrepreneurship, & wealth creation, & an absence of regulation on the part of the
government
6. Controlled System: refers to an economic system where the fundamentals of the law of
supply & demand, private ownership, entrepreneurship, & wealth creation are largely
restricted or absent, & the government fully controls the economic direction & activity
7. Mixed Economic System: an economic system that contains components of both open
an controlled systems. It includes the core principles of economic freedom, with some
degree of centralized economic planning & government regulation & involvement
8. Expenditures: the purchases you make in support of your day-to-day economic activity
that are deemed to be of value in meeting sustenance needs & in improving your overall
quality of life
9. Savings: dollars you set aside today that will support economic activity & wealth
creation in/for the future
10. Capital Asset Investments: investments you are making today to further expand your
capacity to conduct & expand your productivity & overall economic capacity

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11. Credit: the borrowing of dollars to support expenditures of investments being made
12. Gross Domestic Product (GDP): the total market value of the goods & services a
nation produces domestically over a period of time
13. Recession: a period of time that marks a contraction in the overall economic activity
within an economy. A recession is typically believed to occur when an economy
experiences two or more quarters of negative GDP movement
14. Chartered Banks: financial institutions regulated under the Canada Bank Act. Their
primary responsibility is to bring together borrowers *lenders by accepting deposits &
lending out money- all in a manner that safeguard the interest of their customers
15. Inflation: a rise in the level of prices of goods & services within an economy over a
period of time
16. Parity: being equal of equivalent to; specifically the value of one currency being equal to
that of another
17. Purchasing Power Parity (PPP): a measure that takes into account the relative cost of
living & the inflation rates of each country, & adjusts the total value of economic activity
accordingly
18. Hostile Takeover: refers to an attempt by a company to take over another company
whose management & board of directors are unwilling to agree to the merger or
takeover
19. PESTEL Analysis: a macro-level assessment of the political, economic, social,
technology, environmental, & legal trends that can or will impact the markets within
which an organization competes
20. Protectionism: the outcome of the intent of economic policies that are put in place to
protect or improve the competitiveness of domestic industries via impeding or restricting
the openness of a market or markets to foreign competitors through the use of tariffs,
trade restrictions, quotas, artificial control of currency values, or other related activities
21. Purely Competitive Markets: markets that are characterized by a number of similar
(undifferentiated) products or services, the absence of a dominant market leader, & few
barriers to entry
22. Monopolistic Markets: markets that possess a number of different suppliers of products
& services, but the nature of the product of service, along with the marketing effort
initiated by businesses within the sector, has enabled true differentiation to set it
23. Oligopoly-based Markets: markets that contain a small number of suppliers that control
a large percentage of market share within the market, & that compete on the basis of
products &/or services that have achieved success in distinguishing themselves from
their competitors
24. Monopoly-based Markets: markets that are served by a single product/ service supplier
Chapter 3
1. IPO (Initial public offering): the sale of the company’s stock for the first time in the
public marketplace with the intent to raise equity (money) to fund company growth &
operations
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