| A | B |
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| economics | the study of how a society chooses to use resources to produce and distribute goods and service's for people's consumption |
| market economy | an economic system in which economic decisions are made in the marketplace |
| supply | the amount of goods and services that producers provide at various prices |
| demand | the amount or quantity of goods and services that consumers are willing to buy at various prices |
| command economy | an economic system in which a central authority makes all key economic decisions |
| mixed economy | an economic system in which the marketplace determines some economic decisions, and the government makes some decisions |
| natural resources | raw materials found in nature |
| human resources | workers, managers, contractors, and other employees |
| capital resources | the buildings, factories, materials, money, vehicles, and equipment used to produce goods and services |
| infrastructure | the large-scale public systems and services necessary for economic activity |
| scarcity | a term used to describe a situation in which there is a limited amount of a commodity |
| opportunity cost | the cost associated with taking one course of action instead of another |
| Gross Domestic Product | the total value of goods and services produced in a country each year |
| cost-of-living index | a measure of how much a typical family must spend to live |
| inflation | the increase in currency relative to the availability of goods and services |
| purchasing power parity | an estimate of the exchange rate needed to equalize the purchasing power of currencies from different countries |
| balance of trade | based on the number of imports as compared to the number of exports |
| underdeveloped economy | an economy with high levels of unemployment, very few natural resources, and high poverty |
| developing economy | an economy with a disproportionately small middle class, technological dualism, low savings rates, and poor banking facilities |
| industrialized economy | an economy that produces physical goods and has developed trade relationships with foreign companies and governments |
| absolute advantage | when a country can produce a good or service more efficiently than any other country in the world |
| comparative advantage | the advantage gained by making a product most efficiently on a personal best level |
| topography | the physical surface features of a geographic area |
| cartography | the science or art of mapmaking |
| population density | a measurement of the number of people living in a geographic area |
| proximity | the physical nearness of one thing to another |
| money | anything that people will accept as a form of payment |
| currency | the form of money used by a specific country or region |
| currency exchange rate | the rate at which one country's currency can be traded for another country's currency |
| hard currency | a currency that can exchanged for other currencies at uniform rates in financial centers around the world |
| soft currency | an unstable currency that is not exchanged at major financial centers |
| dollarization | when a country official uses a foreign country's currency as legal tender for conducting transactions |
| currency value fluctuation | the change in value of one country's currency when it is traded for another country's currency |
| balance of payments | the difference between the amount of money the government pays to other countries and the amount it receives from them |
| International Monetary Fund | an organization with over 180 member countries that allows member countries to facilitate trade at established exchange rates |
| World Bank | an organization who provides loans and helps build and improve communication and transportation systems and energy plants in disadvantaged countries |
| capital | money needed to establish a business and operate it |
| business | any activity that seeks profit by providing goods or services to others |
| international business | any activity involving a business operations across national borders |
| domestic company | a company that conducts business in only one country, known as the home country |
| international company | a company that conducts business across national borders |
| globalization | the increasing integration of the world economy |
| global dependence | the concept that all countries depend on each other for trade |
| ethics | a set of moral principles by which people conduct themselves personally, socially, or professionally |
| business ethics | a set of ideas about how a company should conduct business in relation to legal, social, and environmental issues |
| social responsibility | the duty to do what is best for society |
| code of ethics | a statement that explains what a company or group believes is proper and improper conduct |
| stakeholders | the various individuals or groups of people who have a direct interest, involvement, or investment in something |
| culture | a set of beliefs, customs, and attitudes of a distinct group of people |
| values | strongly held concepts that are present in a culture |
| norms | social rules that affect behaviors and actions, and represent cultural values |
| folkways and mores | cultural customs that dictate how people act socially |
| role | the part a personal plays in social situations |
| subculture | a smaller group or subset within a larger culture |
| homogeneous culture | a culture in one in which one group of people is dominant in the population |
| heterogeneous culture | a culture where there are many different groups of people |
| social institutions | organizations that represent the patterns of activity that express the culture of a country |
| culture shock | a reaction that newcomers to a culture may experience |
| cultural baggage | a set of cultural attitudes that include the beliefs, values, and assumptions that people carry with them throughout life |
| cultural bias | a preconceived attitude of favoring or disliking a particular culture |
| stereotyping | the practice of identifying a person or group by a single trait, or as a member of a certain group instead of an individual |
| ethnocentrism | the belief that one's own culture is better than all other cultures |
| communication | transmitting, receiving, and processing information |
| language | the medium of communication through words, symbols, numbers, characters, or nonverbal cues |
| verbal communication | sending messages by using words that are either spoken or written |
| slang | colloquial speech used on the street or in recreational situations |
| international trade documentation | the papers and documents used to legally export or import goods |
| nonverbal communication | sending messages without the use of words |
| gift | an item given to convey goodwill |
| bribe | an item or money offered to entice the receiver to do something illegal or unethical |
| expatriate | a person who relocates in a foreign country to live and/or conduct business |
| acculturation | the process of understanding, adapting to, and operating in a foreign culture |
| imports | goods and services that people in one country buy from people in another country |
| exports | goods and services that people in one country sell to people in another country |
| good | a tangible item that is made, manufactured, or grown |
| service | an intangible benefit or task provided by a business to its customers |
| FOB | signifies that the ownership of merchandise in transit determines if freight charges are free |
| bill of lading | identifies exactly what is being shipped |
| certificate of origin | identifies the country in which a good was purchased |
| dependency | the practice of relying too much on one trading partner |
| trade barriers | restrictions that reduce free trade and limit competition from imported goods |
| protectionism | a system of imposing extra costs on imports to protect the interests of local businesses |
| dumping | the practice of selling goods in another country for less than the cost of manufacturing them, or for less than their market price |
| democracy | a government system in which the nation's citizens hold political power |
| totalitarianism | a type of government system in which citizens have no influence on the government's policies and laws |
| theocracy | a type of totalitarian government whose leaders claim to be inspired by divine guidance |
| free trade zone | a place where people can buy goods from other countries without paying extra taxes |
| free trade agreement | a treaty between countries in which the countries agree to not charge taxes, duties, or tariffs on goods that they trade |
| common law | a set of laws based on local customs, traditions, and precedent |
| civil law | a set of codes based on broad legal principles |
| theocratic law | a set of laws based on religious teachings |
| liability | legal responsibility for the financial cost of another person's losses or injuries |
| intellectual property | an original work fixed in a tangible medium of expression that can be copyrighted, patented, or trademarked |
| litigation | a legal process used to resolve a dispute through the court system |
| mediation | a process of intervening between conflicting parties that promotes resolution of their conflict outside the court system |
| arbitration | a process to resolve disputes in which each side presents its case to an independent individual who makes decisions that are binding |
