LAP EC 22
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| Brain drain | The situation that exists when a country or region loses its talented employees to other jobs overseas
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| Brand value | A belief or quality that a brand stands for and is built around
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| Cold War | A state of heightened tension that existed between the Eastern and Western parts of the world, lasting from the end of World War II until approximately 1991
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| Culture | The customs, habits, and traditions of a particular group of people
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| Diversification | Management of risks by spreading out financial investments among a number of different securities or business ventures
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| Expansion | The stage of the business cycle characterized by increased spending and borrowing, increased demand for goods and services, increased employment rates, and decreased interest rates on loans
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| Exporting | The process of selling goods and services to individuals, businesses, or governments in other countries
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| Franchise | A contractual agreement between a parent company and a franchisee to distribute goods or services
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| Globalization | The rapid and unimpeded flow of capital, labor, and ideas across national borders
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| Human resources | People who work to produce goods and services
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| Infrastructure | The basic roadways, utilities, and other services (police, fire, etc.) that create a foundation for a society
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| Iron Curtain | A term referring to the ideological separation of East and West during the Cold War
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| Joint venture | An arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels, for the benefit of all parties
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| Licensing | A business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted (e.g., logo, name) for the profit of both parties
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| Market research | The systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern that affects a market
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| Market share | An organization’s portion of the total industry sales in a specific market
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| Multinational firm | A company that operates on a worldwide scale
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| Nationalism | A sense of pride in one’s own country that can create a resistance to outside influences
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| Natural resources | Items that are found in nature and used to produce goods and services
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| Offshoring | Producing goods in foreign countries typically involves moving domestic jobs overseas
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| Royalties | A percentage of actual sales that a licensee pays to a licensor; usually anywhere from 5 to 15 percent
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| Strategic alliance | See joint venture
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| Target market | The particular group of customers a business seeks to attract
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| Tax haven | A country that offers low or no tax rates
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| Wholly owned subsidiary | A business entity completely owned and controlled by its parent company
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