| A | B |
|---|
| Domestic Business | Making, buying & selling goods & services within a country |
| International Business | Business activities necessary for creating, shipping, and selling goods & services |
| Global Dependency | When items consumers need and want are created in other countries |
| Investment Opportunities | To earn additional funds |
| Geography | Climate, terrain, location, & natural resources that influence its business activities |
| Political and legal factors | Other elements of the International business environment |
| Limited resources | basic economic problem |
| Culture | Accepted behaviors, customs & values of society |
| Balance of trade | Difference between a country's exports & imports |
| Economic system | Method a country uses to answer the basic economic questions |
| Mixed economy | Blend between government involvement in business & private ownership |
| Socialism | Most basic industries owned & operated by government |
| Command Economy | Government or central-planning committee regulates everything produced |
| Market Economy | Based on froces of supply and demand |
| Infrastructure | Nation's transportation, communication, and utility systems |
| Industrialized country | Strong business activity resulting from advanced technology & educated population |
| Absolute advantage | When a country produces an item at a lower cost than other countries |
| Comparative advantage | A country specializing in an item at which it is relatively more efficient |
| Gross Domestic Product | GDP |
| Trade barriers | Restrictions that reduce free trade among countries |
