1- Intermediaries: buy products from manufacturers and resell them to the consumers.
Revenue- money a business makes from selling its goods.
Profit- a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Top line- (Sales Revenue) prices go up bottom line- Expenses and Profit
Stakeholders- Groups of people who are different by the policies and decisions made by an organization. Micro-decisions made by individuals and businesses. Macro- national economy and global economy
GDP-Total dollar value of all good and services produced by all people
CPI-measures the changes in prices of a fixed basket of good purchased by a consumer. Fiscal policy- gover. Influence on amount of savings and expeditures(tax rates, money). Oligopoly- only a few sellers
monopoly- only one seller, keep other firms from entering the industry.
2-Ethics- study of right and wrong and choices individuals make.
ethical issues-safe, reliable, and reasonably priced social respons: business activities have an impact on society, decision making
Philantrophic- good corporate citizen ethical- obligation to do what is right legal-obey the law, right and wrong economic- profitable
socioeconomic model- impact of its decisions on society Affinity, authenticity- connection between two people Competence(skills, results, and capabilities character(over and over again, reliable, honest, genuine, integrity) =credibility
3- International business- changes across national boundaries
Absolute adv: produce a specific product more efficiently than any other nation. Comparative adv: produce a specific product more efficiently than any other product. Balance of trade: total value of a nations exports minus the total value of its imports over some period of time. Trade deficit: negative, bringing un more than sending out trade restrictions- imports from other nations tariff- (tax) put on a specific import (import duty) non-tariff barriers- non-tax actions by a gover. To favor domestic over foreign suppliers. Revenue tariff- create income for the gov. Protective tariff- protects domestic production from competition by making price of imports higher than at home. Quotas- non-tariff barrier that limits the amount of a specific product that can be imported during a given time. Indirect exporting- selling to or through an intermediary, distribution and sale. Direct exporting-selling directly Licensing- agreement where one firm permits another form to produce and market its products. Joint venture-a specific goal or to operate for a specific time. Owned facilities- production and marketing facilities in one ir more countries, two forms- 1.New facilities in foreign count. 2. Purchase existing firm in foreign country. Disad: losses are your own adv: complete control.
multinational firm- company that produces and sells product or services in multiple countries.
4-sole proprietorship: a business owned and operated by one person (walmart)(own boss, all profits...) disad: unlimited liability, owner is responsible. Corporation- a legal person, artificial person made by law. Stock- the shared of ownership of a corporation stockholder- a person who owns a corporation's stock
stockholders-direction-officers-employeers different level of supply chain is--- vertical merge unrelated industries is---conglomerate merge