Summary of Terms CH 4,6,7,8,10

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Published on 7 Apr 2011
School
UTSC
Department
Management (MGT)
Course
MGTA01H3
Professor
CHAPTER 4
Globalizationthe integration of markets globally
Importsproducts that are made or grown abroad and sold in Canada
Exportsproducts 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 incomethe average income per person of a country
Absolute advantagea nations ability to produce something more cheaply or better than any other country
Comparative advantagea nation’s ability to produce some products more cheaply or better than it can others.
National competitive advantagea 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 tradethe difference in value between a country’s total exports and its total imports
Trade deficitoccurs when a country imports more than it exports
Trade surplusoccurs when a country exports more than it imports.
Balance of paymentsthe difference between many flowing in to and out of a country as a result of trade and other
transactions
Exchange ratethe ratio of one currency to another
Euroa common currency shared among most of the members of the European union excluding Denmark, Sweden, and
the United Kingdom
Exportera firm that makes products in one country and then distributes and sells them in others.
Importera firm that buys products in foreign markets and then imports them for resale in its home country
International firma company that conducts a significant portion of its business abroad and maintains manufacturing
facilities overseas
Multinational firmcontrols assets, factories, mines, sales, offices, and affiliates in two or more foreign countries.
Independent agenta foreign individual or organization who agrees to represent an exporter’s interest in foreign
markets.
Licensing arrangementan 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 officea location that an exporting firm establishes in a foreign country in order to sell its products more
effectively
Strategic alliancean enterprise in which two or more persons or companies temporality join forces to undertake a
particular project
Foreign direct investment (FDI)buying or establishing tangible assets in another country
Investment Canadareplaced FIRA in 1985, designed primarily to attract and facilitate foreign investment in Canada.
Quotaa restriction by one nation on the total number of products of a certain type that a be imported from another
nation
Embargoa government order forbidding exportation and/or importation of a particular product
Tariffa tax levied on imported products
Subsidya government payment to help domestic business compete with foreign firms
Protectionismprotecting 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
Cartelany association of producers whose purpose is to control supply of and prices for a given product
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Dumpingselling a product for less abroad than in the producing nation, illegal in Canada.
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CHAPTER 6
Goalsobjectives that a business hopes and plans to achieve
Mission statementan organization’s statement of how it will achieve its purpose in the environment in which it
conducts its business.
Long-term goalsgoals set for extended periods of time, typically five years or more into the future
Intermediate goalsgoals 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 formulationcreation of a board program for defining and meeting an organization’s goal
Strategic goalslong-term goals derived directly from a firms mission statement
SWOTidentification and analysis of organizational strength and weaknesses and environmental opportunities and
threats as part of strategy formulation
Environmental analysisthe process of scanning the environment for threats and opportunities
Organizational analysis the process of analyzing a firms strengths and weaknesses
Strategic plansplans that reflect decisions about resource allocations, company priorities, and steps needed to meet
strategic goals.
Tactical plansgenerally, short-range plans concerned with implementing specific aspects of a company’s strategic
plans
Operational plans – plans setting short-term targets for daily, weekly, or monthly performance.
Corporate-level strategyidentifies the various businesses that a company will be in, and how these businesses will
relate to each other.
Business-level (competitive) strategyidentifies the ways a business will compete in its chosen line of products or
services
Functional strategiesidentify the basic courses of action that each department in the firm will pursue so that it
contributes to the attainment of the businesss overall goals
Concentration strategyinvolves focusing the company on one product or product line
Market penetrationboosting sales of present products by more aggressive selling in the firms current markets
Geographic expansionexpanding operations in new geographic areas or countries
Products developmentdevelopment improved products for current markets.
Horizontal integrationacquiring control of competitors in the same or similar markets with the same or similar
products
Vertical integrationowning or controlling the inputs to the firms processes and/r the channels through which the
product or services are distributed
Diversificationexpanding into related or unrelated products or market segments
Investment reductionreducing the company’s investment in one or more of its lines of business
Cost leadershipbecoming the low cost leader in an industry
Differentiationa firms seeks to be unique in its industry along some dimension that is valued by buyers
Focus strategyselecting a market segment and serving the customers in that market niche better than competitors
Contingency planningidentifying aspects of a business or its environment that might entail changes in strategy
Crisis management an organization’s methods for dealing with emergencies
Managementthe process of planning, organization, leading, and controlling a businesss financial, physical, human,
and information resources in order to achieve its goals
Planningthat portion of a manager’s job concerned with determining what the business needs to do and the best way to
achieve it
Organizingthat portion of a manger’s job concerned with mobilizing the necessary resources to complete a particular
task.
Leadingthat portion of a manager’s job concerned with guiding and motivation employees to meet the firms objectives
Controllingthat portion of a manager’s job concerned with monitoring the firms performance and, if necessary, acting
to bring it in line with the firms goals
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Document Summary

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.