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58 Cards in this Set
- Front
- Back
business
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all profit-seeking activities and services that provide goods and services necessary to an economic system
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profits
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represent the rewards for businesspeople who take risks involved in blending people, technology, and information to create and market want-satisfying goods and services.
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Factors of production
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refers to the four basic inputs: natural resources, capital, human resources, and entrepreneurship
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Competitive differentiation
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the unique combination of organizational abilities, products, or approaches that sets a company apart from competitors in the minds of consumers
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Entrepreneur
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a risk taker in the private enterprise system
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Branding
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the process of creating an identity in the consumer's mind for a good, service, or company
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Relationship management
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the collection of ongoing activities to maintain ongoing, mutually beneficial ties with customers and other parties
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Partnership/strategic alliance
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a partnership is an affiliation of two or more companies in order to help each other achieve a common goal. a strategic alliance is a partner ship created in order to give a strategic advantage to the companies involved
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Outsourcing
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using outside vendors to produce goods and fulfill services that were previously handled in-country or in-house
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offshoring
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the relocation of business processes to lower-cost locations overseas.
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nearshoring
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involving outsourcing production or services to locations near a firm's home base
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Ethics
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the standard of conduct and moral values governing actions and decisions in the workplace
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Conflict of interest
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exists when a businessperson is faced with a situation in which an action benefitting one group has the possibility with harming another
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Integrity
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adhering to deeply felt ethical principles in business situations
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Whistle-blowing
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an employee's disclosure to company officials, government authorities, or the media off illegal, immoral, or unethical practices
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Code of conduct
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formal statement that defines how the organization expects its employees to act.
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Sexual harassment/sexism
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sexual harassment referrs to the unwelcome or inappropriate sexual actions in the workplace. sexism referrs to discrimination against members of either sex, but primarily women.
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Age discrimination
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discrimination on the basis of age
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Three-question test
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used to resolve ethical problems
1) is it legal 2) is it balanced? 3) How does it make me feel? |
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Front-page-of-the-newspaper test
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"how would this look on the front page of the newspaper?"
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Utilitarianism
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the consequences of an act determine whether it is right or wrong
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Ethical egoism
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"if it's good for me, then it must be ok"
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Economics
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The study of how a society uses scarce resources to produce and distribute goods and services
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Macroeconomics
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focus on economy as a whole; considers aggregate data from large groups of people, companies, or products
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Microeconomics
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focus on individual parts of economy, such as households or firms
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Capitalism
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system which rewards businesses for meeting the needs of customers
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Mixed economy
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government-owned firms operate alongside privately-owned firms
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Socialism
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government ownership and operation of major industries such as healthcare and communications
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Command economy/communism
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government controls determine business ownership, profits, and resource allocation to accomplish government controls rather than those set by individual businesses
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Pure competition
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a market structure, like that of small-scale agriculture, in which large numbers of buyers or sellers exchange homogeneous goods and no single participant has a significant influence on price
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Monopolistic competition
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a market structure in which large numbers of buyers and sellers exchange relatively well differentiated products, so each participant has some control over price.
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Oligopoly
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a market structure in which relatively few sellers compete and high startup costs form barriers to keep out new competitors
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Monopoly
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market structure in which a single seller dominates trade in a good or service for which buyers can find no substitute.
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Productivity
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the relationship between the goods and services produced in a nation each year and the inputs needed to produce them. Productivity = (output)/(input)
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GDP/GNP
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Gross Domestic Product - sum of all goods and services produced in a country during a specific time period
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Inflation
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rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production
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Unemployment rate
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usually expressed as a percentage of the workforce who are unemployed
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Monetary policy
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government’s programs for controlling the amount of money circulating in the economy and interest rates
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Fiscal policy
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government’s use of taxation and spending to affect the economy
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Budget
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organization's plan for how it will raise and spend money during a given time period
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Surplus
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when a company has an amount of a good that is greater than needed
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Deficit
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the budget shortfall (when expenses exceed revenues) in a given fiscal year.
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National debt
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the combined total of all previous deficits of a nation to foreign countries and manufacturers
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Absolute and comparative advantage
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absolute advantage - a country can sell a product at a lower price than any other country, or a country is the only country that can provide a given product.
Comparative advantage - lower prices result from every country specializing in products it can produce most readily and cheaply, trading them for products specialized in by other countries |
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Balance of trade
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trade surplus vs. trade deficit
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Balance of payments
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the difference between total payments to other countries and total receipts from other countries
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Trade surplus
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Exports exceed imports
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Trade deficit
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Imports exceed exports
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Exchange rate
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value of one nations currency relative to the currencies of other countries
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Tariffs
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tax imposed on imported goods
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Quotas
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limit the amounts of particular goods that countries can import during specified time periods
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WTO
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World Trade Organization - 149-member international institution that monitors and promotes international trading. also solves international trading disputes
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NAFTA
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agreement between Canada, US, and Mexico to break down tariffs and trade restrictions
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EU
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European Union - 25-nation economic alliance
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Multinational Corporation
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Can sidestep restrictive trade and licensing restrictions by having headquarters in more than one country.
Can move their operations from one country to the next based on more favorable economic conditions. Can tap into a vast source of technological expertise by drawing upon the knowledge of a global workforce |
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Devaluation
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a drop in a currency's value relative to those of other nations or a fixed standard
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Dumping
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occurs when a foreign company charges a lower price that those of a country's domestic companies. it drives down the price of domestic companies products
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Embargo
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imposes a ban on importing a certain good or even a total halt of trading with a particular company.
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