Theme 4

• Protectionism


  Any attempt by a country to impose restrictions on trade in goods and services
• Trade blocs


  Groups of countries in specific regions that manage and promote trade activities
• EU


  A group of countries that have formed a regional bloc, based on a treaty of political, social and economic issues
• EU : EMU (European monetary Union)


  The introduction of the single currency across member states participating
• ECB (European Central Bank)


  The central bank for the euro, and responsible for monetary policy in the Eurozone.
• Single market


  a system in which goods, services, and capital move freely, with no barriers
• Customs Union


  A group of countries which eliminates trade barriers between member countries and adopts a common external trade policy
• Free trade area


  A group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies.
• Member countries


  Countries part of the trade bloc
• Common external tariff


  A common tariff set by a group of countries imposed on imported goods from non-member countries
• International trade


  the exchange of goods and services across the world
• Globalisation


  The increasing interconnectivity between countries
• Exchange rates


  The value of one currency in terms of another
• Skills shortages


  When there is a lack of workers with the desired qualifications in the industry
• Infrastructure


  includes physical capital

  (transport networks, energy, power and water supplies and telecommunications networks)
• Political stability


  the ability of a government to consistently provide services that meet the basic needs of most of the population to foster the public's confidence in the institutions of the state
• Government incentive


  A special discount a government will give to try and motivate companies to do business in their country
• Ease of doing business


  the amount of effort required on the part of a customer when dealing with a firm
• Natural resources

  Raw materials supplied by nature
• Return on investment


  net profit after taxes divided by total assets
• Cost advantage


  Where a business is able to produce his product at a lower cost than the competition
• Differentiation advantage


  Where are business is able to differentiate its products from the competition, such that customers perceive superior value
• Joint venture


  A separate business entity created by two or more partners involving shared ownership, returns and risks
• Global mergers


  A combination of two previously separate firms, which is achieved by forming a completely new firm into which the two original businesses are integrated
• Local Economy


  economic activities of the locale in which you live
• FDI


  Investment made by a foreign company in the economy of another country
• Balance of Payments (BOP)

  a statement of account that shows all transactions between the residents of one country and the rest of the world for a given period of time
• Technology transfers


  transfer of knowledge or another form of technology may be easier within a single organization than through a market transaction between separate organizations
• Skills transfer


  The passing of key skills and technical know-how from an MNC to local workers and the host country.
• Transfer Pricing


  prices charged in sales between an organization's units
• Business culture


  the norms, values, and beliefs that pertain to all aspects of doing business in a culture
• Tax revenue


  the money a government gains from the collection of taxes
• Structural unemployment


  unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
• MNCs (multinational companies)


  A business that operates more than one country
• Stakeholders


  Anyone with an interest/associated with a business
• Ethics


  The morals and principles that underpin business decision making
• Ethical behaviour


  Doing what is morally right
• A global market strategy


  The adoption of a marketing strategy to target all market on a worldwide scale
• Glocalisation


  Global brand, which has a doctor to the needs of the local market
• EPG model


  A framework that can be used to consider marketing approaches used by global firms

  (Ethnocentric/home/, geocentric /global (mix)/, polycentric /global/)