Ch. 3
Culture
Vocabulary Term
Subculture
Cultural Baggage
Nuclear Family
Extended Family
Class System
Contexting
Nonverbal Communication
Body Language
Individualism
Collectivism
Ethnocentrism
Culture Shock
CH. 4
Vocabulary Term
Political System
Democracy
Definition
The accepted behaviors, customs, and values, of a society or a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions
A subset or part of a larger culture
The idea that you carry your beliefs, values, and assumptions with you at all times
A group that consists of a parent or parents and unmarried children living at home together
A group that consists of the parents, children, and other relatives living together
A means of dividing the members of a cultural group into different levels
The level of how direct or indirect communication is
Communication that does not involve the use of words
A type of nonverbal communication where meaning is conveyed by facial expressions, upper and lower body movements, and gestures
The belief in the individual and his or her ability to function relatively and independently
The belief that the group is more important than the individual
The belief that one’s culture is better than another’s culture
A normal reaction to all of the differences of another culture
Definition
The means by which people in a society make the rules that that control and influence their lives
A political system in which all people have the opportunity to take part in making the rules

Totalitarian System
Host Country
Social Responsibility
Home Country
Protectionism
Duty
Quota
Boycott
Trade Embargo
Expropriation
Economic Nationalism
Free-Trade Zone
Free-Trade Agreement
Common Market that govern them
A government system in which political control is held by one person, a small group of people, or one political party
The country in which a multinational enterprise is guest
The process when people function as good citizens who are sensitive to their surroundings
The country in which a multinational enterprise is headquartered
A government policy of protecting local or domestic industries from foreign competition
A tax placed on products that are traded internationally
A limit on the total number, quantity, or monetary amount of a product that can be imported from a given country
Absolute restriction on the import of certain products of certain countries
A sanction imposed by a country against another country that stops all import-export trade with that country
When a government takes control and ownership of foreign based assets and companies
A policy of restricting foreign ownership of local companies and hindering foreign imports
A designated zone where products can be imported duty free
An agreement between countries that eliminates duties and trade barriers on products traded among themselves
An agreement among countries that eliminates trade barriers, encourages investment, and allows workers to move freely

Tax Holiday across borders
Situation where a corporation does not pay corporate income taxes to a foreign government if it invests in their country
CH. 5
Vocabulary Term
Charter
Cooperative
Corporation
Definition
The document granted by the state or federal government that allows a company to organize as a corporation
A business owned by its members and operated for their benifit
A business that operates as a legal entity separate from any of the owners
Direct Exporting
Dividens
A company that actively seeks and conduts exporting
A share of corporate earnings paid to stockholders
Foregin Direct Investment (FDI) The purchase of land or other resources in a foregin country
Franchise The right to use a company name or business process in a specific way
Indirect Exporting The selling of a companys products in a foreign market without any special activity for that purpose
Joint Venture
Licensing
Limited Liability
Managment Contract
An agreement between two or more companies to share a business project
Selling the right to use some intangible property for a fee or royalty
The situation in which a business owner is only responsible for debts of the business up to the amount invested
An agreement under which a company sells only its management skills in another country
Multinational Company or
Corporation (MNC)
Municiple Corporation
An organization that conducts business in several countries
Net Income or Profit
Nonprofit Corporations
An incorporated town or city organized to provide services for citizens rather than to make a profit
The difference between money taken in and expences
Groups created to provide a service and not concerned with making a profit
Partnership
Sole Proprietorship A business owned by one person
Stockholders or Shareholders The owners of a corporation
Unlimited Liability
A business that is owned by two or more people, but is not incorporated
Wholly-Owned Subsidiary
The situation in which a business owners personal assets can be used to pay any debts of the business
An independent company owned by a parent company

Ch. 6
Vocabulary Term a document stating the agreement between the export and the transpotation company
Definition balance of payments the total flow of money coming into a country minus the total flow going out bill of lading certificate of origin a document that states the name of the country in which the shipped goods were produced cost and freight (C&F) the price includes the cost of goods and freight, but the buyer must pay for insurance separatly cost, insurance, and freight (CIF) countertrade the cost of goods, insurance, and freight are included in the price quota the exchange of products or services among companies in different countries with the possibility of some currency exchange government employee authorized to collect the duties levied on imports customs official direct barter the exchange of goods and services between two parties with no money involved economic community an organization of countries that bond together to allow a free flow of products free on board (FOB) terms of sale that mean the selling price of the product includes the cost of loading the exported goods into transport vessels at the specified place freight forwarder industry monopolistic competition a company that arranges to ship goods to customers in other countries a group of companies in the same type of business a market situation with many sellers, each with a slightly different product monopoly oligopoly pure competition trade deficit trade surplus a situation in which one seller controls the entire market for a product or service control of an industry by a few large companies a market situation with many sellers, each offering the same product the result of importing more goods and services than the country is exporting the result of exporting more goods and services than the country is importing
Ch. 7
Vocabulary Term
Account Payable
Account Receivable
Bill of Exchange
Bond
Capital Project
Amount owed to a supplier
Definition period of time
An expensive, long term financial activity
Amount owed by a customer to a company that sells on credit
A written order by an exporter to an importer to make payment
A certificate representing money borrowed by a company over a long

Commercial Invoice A certificate prepared by the exporter that provides a description of the merchandise and the terms of the sale
Credit Terms
Currency Option
Conditions of a sale on account including the time required for payment
A contract a person or company buys that allows the buyer the option to purchase a foreign currency sometime in the future at today’s rate
A method of moving payments through banking computer systems Electronic Funds
Transfer (EFT)
Exchange Controls
Exchange Rate
Government restrictions to regulate the amount and value of a nations currency
The amount of currency that can be traded for one unit of the currency of another country
Floating Exchange Rate System in which currency values are based on supply and demand
Foreign Exchange The process of converting the currency of one country into the currency of another country
Foreign Exchange
Market
Hard Currency
The network of banks and other financial institutions that buy and sell different currencies
A monetary unit that is freely converted into other countries
Insurance Certificate A certificate explaining the amount of insurance coverage for fire, theft, water, or other damage that may occur to goods in shipment
Interest Rate The cost of using someone else’s money
International Monetary
Fund (IMF)
Letter of Credit
An agency that helps to promote economic cooperation by maintaining an orderly system of world trade and exchange rates
A financial document issued by a bank for an importer in which the bank guarantees payment
Money
Promissory Note
Soft Currency
Trade Credit
World Bank
Anything people will except for the exchange of goods and services
A document that states a promise to pay a set amount by a certain date
A currency that is not easy to exchange for other currencies
Buying or selling on account
A bank whose major function is to provide economic assistance to lessdeveloped countries
Ch. 8
Vocabulary Term
Arbitration
Civil Law
Contract
Common Law
Copyright
Intellectual
Definition
A method of conflict resolution that uses a neutral third party to make binding decisions
A complete set of rules enacted as a single written system or code
A legal system that relies on the accumulation of decisions made in prior cases
A legally enforceable agreement between two or more persons either to do or not to do a certain thing or things
A legal right that protects the original works of authors, music composers, playwrights,artists,and publishers
The technical knowledge or creative work that an individual or company has

Property
International Court of Justice
Liability
Litigation
Mediation
Negligence
Patent
Product Liability
Property
Property Rights
Statutes
Strict Liability
Trademark developed
A court that settles disputes between nations when both nations request that it do so and also advises the United Nations on matters of international law
A broad legal term referring to almost every kind of responsibility, obligation, and duty
A lawsuit brought about to enforce the rights of a person or an organization or to seek a remedy to the violation of their rights
A dispute resolution method that makes use of a neutral third party
The failure of a responsible third party to follow standards of dew care
The grant of an exclusive right of an inventor to make, sell, and use a product or process
Specific responsibility that both manufactures and sellers have for the safety of their products
Everythng that can be owned
Exclusive rights to possess and use property and its profits, to exclude everyone else from interfering with it, and to dispose of it in any legal way
Laws that have been enacted by a body of lawmakers
Responsibility on a manufacturer or seller for intentionally causing injury to another
A distinctive name, symbol, word, picture, or combination of these that is used by a business to identify its services or products
CH. 9
Vocabulary
Term
Balance Sheet
Definition
The document that reports a company’s assets, liabilities, and owner’s equity
Breakeven Point The number of units a business must sell to make a profit of zero
Budget A financial tool that estimates a company’s fund and its plan for spending those funds
Business Plan
Cash Flow
A guide used to start and operate a business
The inflow and outflow of cash
Debt Funds
Entrepreneur
Business funds obtained by borrowing
A risk taker who operates a business
Equity Funds
Fixed Costs
Gross Profit
Income
Statement
Business funds from the owner of the bussiness
Expenses that do not change as the level of production increases
The difference between the cost of an item for a business and the price for which the business can sell that item
A document that summarizes a company’s revenue from sales and its expenses over a period of time
Marketing The business activities necessary to get goods and services from the producer to the consumer
Marketing Plan A document that details the marketing activities of an organization
Small Business An independently owned and operated business that does not dominate an

industry
Telecommuting Using a computer and other technology to work at home instead of in a
Variable Costs
Ch. 10 company office or factory
Business expenses that change in proportion to the level of production
Vocabulary Term
Autocratic Managers
Chief Executive Officers
(CEO)
Definition
The highest manager within a company
Managers who centralize powers and tell employees what to do
Degree of Centralization The amount of authority and responsibility that is delegated to employees or to an organizational unit
Free-Rein Managers
Front-Line Managers
Managers who avoid the use of power
Managers who oversee the day-to-day operations in specific departments
Lines of Authority
Managers
Indicate who is responsible for whom and what in an organization
The people in charge of organizations and their resources
Middle Managers
Organizational Chart A drawing that shows the structure of an organization
Participative Managers Managers who decentralize power and share it with employees
Senior Managers
Managers who oversee the work and departments of a number of frontline managers
Span of Control
Managers who oversee the work and departments of a number of middle managers
The number of employees that a manager supervises
Ch. 11
Vocabulary
Term
Employment
Forecasting
Ethnocentric
Approach
Expatriates
Geocentric
Definition
Estimating in advance the number of employees needed
The human resources approach that uses natives of the parent country of a business to fill key positions at home and abroad
People who live and work outside their native countries
The human resources approach that uses the best available managers without
Approach
Host-country
Nationals regard for their countries of origin
Natives of the country in which they work
Job Description A document that includes the job identification, job statement, job duties and responsibilities, and job specifications and requirements
Parent-Country
Nationals
Expatriates from the country in which their company is headquartered
Polycentric The human resources approach that uses natives of the host country to

Approach manage operations within their country and parent-country natives to manage at headquarters
Regiocentric
Approach
Repatriation
The human resources approach that uses managers from various countries within the geographic regions of a business
The process a person goes through when returning home and getting settled after having worked abroad
Supply Analysis Determining if there are sufficient types and numbers of employees available
Third-country
Nationals
Ch. 12
Expatriates from countries other than the home country of their company or their host coutntry
Vocabulary Term
AFL-CIO
Closed Shop
Codetermination
Collective Bargaining
Grievance Procedure
Labor Union
Lockout
Migrant Laborers
Open Shop
Strike
Arbitrator
Injunction
Definition
An organization of American unions that uses its size and resources to influence legislation that affects its members
An unbiased third party called in to resolve problems whose decisions is usually final and binding
A workplace in which workers are required to join a union before they are hired
A policy of having union members serve on the boards of directors
Negotiations between union workers and their employers in issues of wages, benefits, and working conditions
The steps that must be followed to resolve a complaint by an employee, the union, or the employer
A court order that immediately stops a party from carrying out a specific action
An organization of workers whose goals are improving members working conditions, wages, and benefits
The closing down of a workplace by an employer to force a union to agree to certain demands
People who move to another country for work
A workplace in which workers may chose to join the union or not
A refusal by employees to work in order to force an employer to agree to certain demands
A procedure held to find out if the workers in a workplace really want to become union members
A workplace in which all workers must pay either union dues or fees
Union Representation
Election
Union Shop
Ch. 13
Vocabulary Term
Career
Cover Letter
Informational
Definition
A commitment to a profession that requires continuing education and training and has a clear path for advancement
Communicates your interests in a specific employment position
A meeting with another person to gather information about a career or

Interview
Job
Passport
References
Resume organization
An employment position obtained mainly for money
A government document proving the bearer’s citizenship in the country that issues it
People who can report to a prospective employer about your abilities and work experience
A written summary of a person's education, training, work experience, and other job qualifications
An initial meeting or telephone call to select finalists for available positions Screening
Interview
Selection Interview A meeting where a person is asked a series of in-depth questions designed to help employers select the best person for the job
Visa A stamp of endorsement issued by a country that allows a passport holder to enter that country
Work Visa A document that allows a person into a foreign country for the purpose of employment
Ch. 14
Vocabulary Term
Centralization
Comparability
Data Inputs
Decentralization
Global Information
System
Icons
Operational
Components
Primary data
Reliability
Secondary data
System outputs
Validity
Ch. 15
Vocabulary Term
Centralization
Definition
Information system in which most major decisions are made by managers at company headquarters
The extent to which secondary data from different sources are measured, computed, and reported in the exact same ways
Pieces of information that feed the global information system database
Information system in which most major decisions are made by local managers at different company locations around the world
A computer-based system that provides information about company operations around the world to managers of a multinational organization
Symbols that are meaningful across cultures
The parts of an information system that manage the database and system operations
Data collected by the user firsthand for a specific purpose
The consistency of the gathered data
Data not collected by the user but that are available for his or her use
The various types of data generated from an information system
The extent to which the data measures what the user expects it to measure at company headquarters
Definition
Information system in which most major decisions are made by managers

Comparability
Data Inputs
Decentralization
Global Information
System
Icons
Operational
Components
Primary data
Reliability
Secondary data
System outputs
Validity
Ch. 16
The extent to which secondary data from different sources are measured, computed, and reported in the exact same ways
Pieces of information that feed the global information system database
Information system in which most major decisions are made by local managers at different company locations around the world
A computer-based system that provides information about company operations around the world to managers of a multinational organization
Symbols that are meaningful across cultures
The parts of an information system that manage the database and system operations
Data collected by the user firsthand for a specific purpose
The consistency of the gathered data
Data not collected by the user but that are available for his or her use
The various types of data generated from an information system
The extent to which the data measures what the user expects it to measure
Vocabulary Term Definition
Consumer market individuals and households who are the final users of goods and services demographics distribution international marketing the traits of a country’s population, such as birth rate ,age distribution, marriage rate, gender distribution, education level, and housing situation the activities needed to physically move and transfer ownership of goods and services from producer to consumer marketing activities among sellers and buyers in different countries market marketing mix the likely customers for a good or service in a certain geographic location market segment a distinct subgroup of customers who share certain personal or behavioral characteristics the four major marketing elements of product, price, distribution, and promotion organizational market buyers who purchase items for resale or additional production price product promotion psychographics target market
Ch. 17 the monetary value of a product agreed upon by a buyer and a seller an item (good or service) being offered for sale that satisfies consumer demand the marketing errors that inform and persuade customers buying factors related to lifestyle and psychological influences, such as activities, interests, and opinions the particular market segment that a company plans to serve
Vocabulary Term Definition

Brand a name, symbol, or design that identifies a product convenience goods inexpensive items that require little shopping efforts experiment focus group international product global product a type of data collection that involves a statistical comparison of two or more very similar situations a directed discussion with 8 to 12 people standardized item offered in the same form in all countries in which it is sold a customized product adapted to the culture, tastes, and social trends of a country marketing research the orderly collection and analysis of data in order to obtain information about a specific marketing concern observational research data collected by watching and recording shopping behaviors product life cycle
(PLC) product line the stages a good or service goes through from the time it is introduced until it is taken off the market an assortment of closely related products designed to meet the varied needs of target consumers qualitative research quantitative research shopping goods specialty goods test market using open ended interview questions to obtain comments from consumers about their attitudes and behaviors large-scale surveys that collect numeric data used to study consumers products purchased after consumers compare brands and stores unique products that consumers make a special effort to obtain good or service an experimental research study that measures the likely success of a new
Ch. 18
Vocabulary Term agent customes broker ownership of the product
Definition an intermediary that brings buyers and sellers but does not take an intermediary that specializes in moving goods through the customs process producers sell goods and services directly to the final user direct distribution channel distribution chanel dumping
(ETC) export management company (EMC) export trading company freight forwarder indirect distribution the path taken by a good or service to get from the producer to the final user the practise of selling exported products at a lower price than that asked in the countrys home country a company that provides complete distribution services for businesses that desire to sell in foregin markets a full service global distribution intermediary a company that arranges to ship goods to customers in other countries goods or services are sold with the use of one or more intermediaries

channel markup intermediary loss leader penetration pricing retailer skim pricing wholesaler between the producer and the consumer any person or organization in the distribution channel that moves goods and services from the producer to the consumer a very low-priced item used to attract customers to a store the amount added to the cost of a product to determine the selling price setting a relatively low introductory price for a new product a store or other business that sells directly to the final user setting a relatively high introductory price for a new product a business that buys large quantities of an item and ressels them to a retailer
Ch. 19
Vocabulary Term advertising
Definition any form of paid, non personal sales communication advertising agency a company that specializes in planning and implementing advertisements database marketing the use of computerized information systems to identify customers with specific demographic traits and buying habits localized advertising the use of promotions that are customized for various target markets personal selling promotional mix publicity direct communications between sellers and potential customers any form of unpaid promotion the combination of advertising, personal selling, publicity, and sales promotion used by an organization pull promotions marketing efforts directed at the final user of an item push promotions marketing efforts directed at members of the distribution channel relationship marketing sales promotion standardized advertising an attempt to create a long term, mutually beneficial relationship between the buyer and seller marketing activities other than advertising, personal selling, and publicity the use of one promotional approach in all geographic regions telemarketing the selling of products during telephone calls to prospective customers