DECA International Business Flashcards

What is 'globalization' in a business context?

Answer: The process of businesses operating and competing on a worldwide scale

Globalization is the process by which businesses increasingly operate on an international scale, integrating markets, production, and supply chains across countries.

What is a 'trade embargo'?

Answer: An official ban on trade with a particular country

A trade embargo is a government-imposed prohibition on commerce with a specific country, often used as a political tool to exert economic pressure.

What does 'localization' mean when a company enters a foreign market?

Answer: Adapting products, services, and marketing to fit local cultural preferences

Localization involves tailoring a company's offerings and messaging to align with the language, culture, regulations, and consumer preferences of a specific foreign market.

Which document is typically required when exporting goods internationally to declare the contents and value of a shipment?

Answer: Commercial invoice

A commercial invoice is a key export document that details the goods being shipped, their quantity, and declared value, required by customs authorities in both countries.

What is 'offshoring' in international business?

Answer: Relocating a business process or production to another country to reduce costs

Offshoring means moving business functions—such as manufacturing or customer service—to another country, typically to take advantage of lower labor or production costs.

What is 'dumping' in international trade law?

Answer: Exporting goods at prices below their production cost to undercut foreign competitors

Dumping occurs when a company exports products at prices below cost or below domestic prices, potentially harming competitors in the importing country and violating WTO rules.