Erwin Abraham Dimaporo February 1, 2024

International Business and Trade

Assignment #1: Please search the meaning of the following terms.

Globalization - The process by which businesses and other organizations develop international
influence or start operating on an international scale. It involves increased interconnectedness
and interdependence of countries through the exchange of goods, services, information, and
ideas.

Free trade - A policy or practice of eliminating barriers, such as tariffs, quotas, and trade
restrictions, to encourage the unrestricted flow of goods and services between countries.

Cost-effective - Achieving maximum efficiency in the use of resources to produce goods and
services at the lowest possible cost.

Competitive advantage - A condition or circumstance that allows a business or country to

produce goods or services of equal value at a lower price or in a more desirable manner than its
competitors.

Tariffs - Taxes imposed on imported or exported goods, often with the aim of protecting
domestic industries or generating revenue for the government.

Industrial revolution - A period of major industrialization that took place during the late 18th
and early 19th centuries, characterized by the transition from agrarian and handcraft-based
economies to ones dominated by industry and machine manufacturing.

International trade - The exchange of goods and services across international borders, involving
the flow of goods, capital, and knowledge between countries.

International business - Commercial activities that involve the transfer of goods, services,
resources, and knowledge across national borders, conducted by individuals or firms.

Protectionism - Economic policy that restricts international trade, often through the imposition
of tariffs or quotas, to protect domestic industries from foreign competition.

Free market - An economic system characterized by minimal government intervention, allowing

market forces of supply and demand to determine prices and allocate resources.

Fiscal policy - The use of government spending and taxation to influence the economy,
particularly in terms of controlling inflation, stabilizing economic growth, and promoting
employment.
Monetary policy - The control of the money supply and interest rates by a country's central
bank to achieve economic goals such as price stability, full employment, and stable economic
growth.

Trade agreement - A pact between two or more countries to facilitate the movement of goods
and services across their borders through reduced trade barriers and increased cooperation.

Standard of living - The overall level of comfort, well-being, and material prosperity
experienced by a population, often measured by factors such as income, employment,
education, and access to basic amenities.

Outsourcing - The practice of contracting out certain business functions or processes to

external third-party providers, often located in different countries, to reduce costs or gain
access to specialized skills.

Social justice - The fair and equitable distribution of resources, opportunities, and privileges
within a society, aiming to ensure that all individuals have equal access to basic human needs
and rights.

Balanced trade - A situation where a country's exports and imports are roughly equal,
minimizing trade deficits or surpluses.

Global recession - A period of significant economic decline affecting multiple countries,

characterized by a decrease in global economic activity, trade, and employment.

Industrialization - The process of developing industries in a country or region, typically

involving the transition from agrarian and manual labor-based economies to ones dominated
by mechanized production.

Great depression - A severe worldwide economic depression that took place in the 1930s,
marked by a decline in industrial production, high unemployment, and widespread poverty.