Business & Economics Glossary

The difference between the value of a country's exports and its imports over a given period. A trade surplus occurs when exports exceed imports; a trade deficit when imports exceed exports.

The ability of a country (or entity) to produce a good at a lower opportunity cost than its trading partners, providing the economic basis for mutually beneficial specialization and trade.

The study of how individuals and groups make decisions about what to buy, use, or discard, including the psychological, social, and economic factors that influence those decisions.

The process by which countries coordinate their economic policies and reduce barriers between their economies, ranging from free trade agreements to full monetary union.

The cost advantages that a company achieves as it increases its output, resulting in a lower cost per unit as fixed costs are spread over a larger volume of production.

Investment by a company or individual in business interests in another country, typically involving establishing operations, acquiring assets, or gaining significant influence in a foreign enterprise.

The process by which national economies, societies, and cultures become increasingly interconnected through trade, investment, technology, and the movement of people and ideas across borders.

Commercial transactions — trade, investment, and operations — that take place across national borders, involving private companies, governments, or both.

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services across national borders to create exchanges that satisfy individual and organizational objectives.

The process of dividing a market into distinct subgroups of consumers who share common needs, characteristics, or behaviors, enabling more targeted marketing strategies.

The set of tactical marketing tools — traditionally Product, Price, Place, and Promotion (the 4Ps) — that a company uses to pursue its marketing objectives in the target market.

A company that operates production facilities, sales networks, or administrative functions in multiple countries, coordinating its activities across national borders.

The network of organizations, activities, resources, and technologies involved in creating and distributing a product from raw materials to the final consumer.

A strategic planning framework that assesses an organization's internal Strengths and Weaknesses, and external Opportunities and Threats, to inform strategic decision-making.

Any government policy or regulation that restricts international trade, including tariffs (taxes on imports), quotas (limits on import volumes), subsidies, and non-tariff barriers such as regulations and standards.