Key Terms
Global market opportunities
Conditions (internal + external) favorable for a company to expand outside its home country.
Internal factors
Company knowledge, capability, readiness. External factors: market growth, customer demand, regulations, trade barriers.
Business landscape
All internal and external factors of a business, its industry, and its environment.
Ethnocentrism
Assuming the business landscape of a foreign market is the same as your home country. This is how companies fail abroad.
Cultural sensitivity
Awareness, appreciation, and ability to adapt to a culture other than your own.
Economic infrastructure
The physical facilities (roads, railways, internet) that support production and distribution of goods.
Consumer income
Total household earnings. Disposable income: what's left after taxes.
Purchasing power
How many goods one unit of currency can buy. Varies widely across the globe.
Shrinkflation
Reducing product size without lowering the price. Common response to inflation by consumer goods companies.
Exchange rate
The rate at which one country's currency trades for another's. Exchange rates fluctuate daily; this affects pricing, pur
Tariffs
Taxes on imports. Most common form of trade regulation.
Quotas
Maximum units allowed to be imported or exported. Used to protect domestic industries.
Embargoes
Full bans on trade with a specific country. Based on political ideologies.
Trade blocs
Intergovernmental agreements removing trade barriers within a region.
Corruption Perceptions Index (CPI)
Published annually by Transparency International. Rates 180 countries on a 0-100 scale.