Glossary - Absolute Advantage - Full advantage over...

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Absolute Advantage - Full advantage over competitors, or the lack of competitors, so as to enable a company or country to set prices and policies without fear of competition. Asia-Pacific Economic Cooperation (APEC) - A forum for officials of countries bordering on the Pacific Ocean to promote trade among their countries. Association of South East Asian Nations (ASEAN) - Association of South East Nations-An association of nations dedicated to economic and political cooperation in south-eastern Asia. Balance of Trade- A net figure calculated by subtracting a country's imports from its exports during a specific period. If a country sells more goods and services than it purchases, its balance of trade is said to be positive, that is, exports exceed imports. Such a balance is generally considered to be favourable. Conversely, a negative balance is said to be unfavourable. Boycott- An unfair trade practice, which occurs when someone in the insurance business refuses to have business dealings with another until he or she complies with certain conditions or concessions. Brand Development strategy - The use of a foreign subsidiary to develop a product to compete in a local market. Brand Equity - The value to a company of a recognizable brand with a positive image. Bureaucracy- A system of carrying on the business of government by means of departments or bureaus, each under the control of a chief, in contradiction to a system in which the officers of government have an associated authority and responsibility; also, government conducted on this system. Business Climate - The state of the business environment, the economy, and the stock market. Business Cycle- A term used in economics to designate changes in the economy. The timing of a cycle is not predictable, but its phases seem to be. Many economists cite four phases -- prosperity, liquidation, depression, and recovery. Business Ethics - A company's attitude and conduct toward its employees, customers, community, and stockholders. Capital Flows- Money that moves from one country to another in the form of investments or loans from private and/or government sources. Capital flow may provide a significant sum to a recipient country's economy and is sometimes implicated in the boom-and-bust cycles that affect some countries. Capitalism- An economic system in which private individuals and business firms carry on the production and exchange of goods and services through a complex network of prices and markets. Central Bank- A financial institution, for example, the Bank of Canada or the U.S. Federal Reserve Bank, whose function is to regulate state fiscal and monetary activities. It is responsible for the issue of bills and for controlling the flow of currency.
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Channels of Distribution - Those businesses-such as importers, wholesalers, and retailers-that connect any manufacturer’s product to the target market. Civil Servant- A person who works in a state or federal government department, but has not been appointed by the
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This note was uploaded on 01/11/2012 for the course ECONOMICS 1010 taught by Professor Aandan during the Spring '10 term at York University.

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Glossary - Absolute Advantage - Full advantage over...

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