Globalization – the integration of markets globally
Imports – products that are made or grown abroad and sold in Canada
Exports – products made or grown in Canada that are sold abroad
General agreement on tariffs and trade (GATT) – international trade agreement to encourage the multilateral reduction
or elimination of trade barriers
World trade organization (WTO) – organization through which member nations negotiate trading agreements and
resolve disputes about trade policies and practices
European union (EU) – agreement among major western European nations to elimination or make uniform most trade
barriers affecting group members.
North American free trade agreement (NAFTA) – agreement to gradually eliminate tariffs and other trade barriers
among the United States, Canada, and Mexico.
Per capita income – the average income per person of a country
Absolute advantage – a nation’s ability to produce something more cheaply or better than any other country
Comparative advantage – a nation’s ability to produce some products more cheaply or better than it can others.
National competitive advantage – a country will be inclined to engage in international trade when factor conditions,
demand conditions, related and supporting industries, and strategies/structures/rivalries are favourable
Balance of trade – the difference in value between a country’s total exports and its total imports
Trade deficit – occurs when a country imports more than it exports
Trade surplus – occurs when a country exports more than it imports.
Balance of payments – the difference between many flowing in to and out of a country as a result of trade and other
Exchange rate – the ratio of one currency to another
Euro – a common currency shared among most of the members of the European union excluding Denmark, Sweden, and
the United Kingdom
Exporter – a firm that makes products in one country and then distributes and sells them in others.
Importer – a firm that buys products in foreign markets and then imports them for resale in its home country
International firm – a company that conducts a significant portion of its business abroad and maintains manufacturing
Multinational firm – controls assets, factories, mines, sales, offices, and affiliates in two or more foreign countries.
Independent agent – a foreign individual or organization who agrees to represent an exporter’s interest in foreign
Licensing arrangement – an arrangement by an owner of a process or product to allow another business to produce,
distribute, or market it for a free or royalty
Branch office – a location that an exporting firm establishes in a foreign country in order to sell its products more
Strategic alliance – an enterprise in which two or more persons or companies temporality join forces to undertake a
Foreign direct investment (FDI) – buying or establishing tangible assets in another country
Investment Canada – replaced FIRA in 1985, designed primarily to attract and facilitate foreign investment in Canada.
Quota – a restriction by one nation on the total number of products of a certain type that a be imported from another
Embargo – a government order forbidding exportation and/or importation of a particular product
Tariff – a tax levied on imported products
Subsidy – a government payment to help domestic business compete with foreign firms
Protectionism – protecting domestic business at the expense of free market competition
Local–content laws – laws requiring that products sold in a particular country be at least partly made in that country
Business practice law - law or regulation governing business practices in given countries
Cartel – any association of producers whose purpose is to control supply of and prices for a given product
Dumping – selling a product for less abroad than in the producing nation, illegal in Canada.
Goals – objectives that a business hopes and plans to achieve
Mission statement – an organization’s statement of how it will achieve its purpose in the environment in which it
conducts its business.
Long-term goals – goals set for extended periods of time, typically five years or more into the future
Intermediate goals – goals set for a period of one to five years
Short-term goals – goals set for the very near future, typically less than one year.
Strategy formulation – creation of a board program for defining and meeting an organization’s goal
Strategic goals – long-term goals derived directly from a firm’s mission statement
SWOT – identification and analysis of organizational strength and weaknesses and environmental opportunities and
threats as part of strategy formulation
Environmental analysis – the process of scanning the environment for threats and opportunities
Organizational analysis – the process of analyzing a firm’s strengths and weaknesses
Strategic plans – plans that reflect decisions about resource allocations, company priorities, and steps needed to meet
Tactical plans – generally, short-range plans concerned with implementing specific aspects of a company’s strategic
Operational plans – plans setting short-term targets for daily, weekly, or monthly performance.
Corporate-level strategy – identifies the various businesses that a company will be in, and how these businesses will
relate to each other.
Business-level (competitive) strategy – identifies the ways a business will compete in its chosen line of products or
Functional strategies – identify the basic courses of action that each department in the firm will pursue so that it
contributes to the attainment of the business’s overall goals
Concentration strategy – involves focusing the company on one product or product line
Market penetration – boosting sales of present products by more aggressive selling in the firm’s current markets
Geographic expansion – expanding operations in new geographic areas or countries
Products development – development improved products for current markets.
Horizontal integration – acquiring control of competitors in the same or similar markets with the same or similar
Vertical integration – owning or controlling the inputs to the firm’s processes and/r the channels through which the
product or services are distributed
Diversification – expanding into related or unrelated products or market segments
Investment reduction – reducing the company’s investment in one or more of its lines of business
Cost leadership – becoming the low cost leader in an industry
Differentiation – a firms seeks to be unique in its industry along some dimension that is valued by buyers
Focus strategy – selecting a market segment and serving the customers in that market niche better than competitors
Contingency planning – identifying aspects of a business or its environment that might entail changes in strategy
Crisis management – an organization’s methods for dealing with emergencies
Management – the process of planning, organization, leading, and controlling a business’s financial, physical, human,
and information resources in order to achieve its goals
Planning – that portion of a manager’s job concerned with determining what the business needs to do and the best way to
Organizing – that portion of a manger’s job concerned with mobilizing the necessary resources to complete a particular
Leading – that portion of a manager’s job concerned with guiding and motivation employees to meet the firm’s objectives
Controlling – that portion of a manager’s job concerned with monitoring the firm’s performance and, if necessary, acting
to bring it in line with the firm’s goals
Imports products that are made or grown abroad and sold in canada. Exports products made or grown in canada that are sold abroad. General agreement on tariffs and trade (gatt) international trade agreement to encourage the multilateral reduction or elimination of trade barriers. World trade organization (wto) organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices. European union (eu) agreement among major western european nations to elimination or make uniform most trade barriers affecting group members. North american free trade agreement (nafta) agreement to gradually eliminate tariffs and other trade barriers among the united states, canada, and mexico. Per capita income the average income per person of a country. Absolute advantage a nation"s ability to produce something more cheaply or better than any other country. Comparative advantage a nation"s ability to produce some products more cheaply or better than it can others.