90+ International Business (Exports & Imports or EXIM) Terms- Business Management Terms – BT School

Explore a comprehensive range of Business Management Terms related to International Business (Exports & Imports) – gain insights into key areas of trade, finance, logistics, legal, strategy, and more.

International business (IB), particularly exports and imports (EXIM), requires a deep understanding of various business management terms to navigate the complexities of the global marketplace. In this article, we delve into the essential concepts and terms that shape international business operations. From trade agreements and tariffs to logistics and supply chain management, we explore the intricacies of cross-border transactions. Understanding terms like Incoterms, letter of credit, customs regulations, and market entry strategies is crucial for businesses seeking to expand their presence globally.

By familiarizing oneself with these business management terms, professionals and entrepreneurs can enhance their ability to engage in successful international trade and seize opportunities in global markets. Whether you are a business student, international trade professional, or aspiring global entrepreneur, this article equips you with the knowledge and vocabulary necessary to thrive in the world of international business.

International Trade

Explore the dynamic world of global trade, encompassing the exchange of goods and services across borders, trade agreements, tariffs, and market access strategies.

  1. Bilateral Trade [bahy-lat-er-uhl treyd]: The exchange of goods, services, or investments between two countries, based on mutually agreed terms and conditions.
  2. Customs [kuhs-tuhmz]: The government agency responsible for regulating and overseeing the flow of goods and services across borders, including the collection of duties, taxes, and tariffs.
  3. Export [ek-sport]: The sale or shipment of goods or services produced in one country to another country, contributing to economic growth and international trade.
  4. Import [im-port]: The purchase or acquisition of goods or services from another country for domestic consumption or further production.
  5. Free Trade [free treyd]: The unrestricted flow of goods and services between countries without barriers, such as tariffs, quotas, or restrictions, promoting global economic integration and efficiency.
  6. International Business [in-ter-nash-uh-nl biz-nis]: Business activities that involve cross-border transactions, trade, and operations between companies or individuals in different countries.
  7. Tariff [tar-if]: A tax or duty imposed on imported or exported goods by a government to regulate trade, protect domestic industries, or generate revenue.
  8. Trade Agreement [treyd uh-gree-muhnt]: A legally binding agreement between two or more countries to promote and regulate trade, addressing issues such as tariffs, intellectual property rights, and market access.
  9. Trade Balance [treyd bal-uhns]: The difference between the value of a country’s exports and imports during a specific period, indicating whether it has a trade surplus (exports exceed imports) or trade deficit (imports exceed exports).
  10. World Trade Organization (WTO) [wurld treyd awr-guh-nuh-zey-shuhn]: An international organization that promotes free trade, sets rules for global trade, and resolves trade disputes between member countries.

International Business Operations

Dive into the intricacies of managing business activities on a global scale, including supply chain management, logistics, operations optimization, and cross-cultural communication.

  1. Cross-Cultural Communication [kros-kuhl-cher-uhl kom-yuh-ni-kay-shuhn]: The exchange of information, ideas, and messages between individuals or groups from different cultural backgrounds, considering cultural norms, values, and communication styles.
  2. Distribution [dis-truh-byoo-shuhn]: The process of delivering goods or services from the producer to the end consumer, including transportation, warehousing, and logistics management.
  3. Foreign Direct Investment (FDI) [for-in dy-rekt in-vest-muhnt]: The investment made by a company or individual from one country into another country, typically involving ownership stakes in foreign businesses or assets.
  4. Globalization [gloh-buh-luh-zey-shuhn]: The increasing interconnectedness and interdependence of economies, cultures, and societies worldwide, resulting in the integration of markets, production, and information.
  5. Joint Venture [joint ven-cher]: A business arrangement in which two or more companies from different countries agree to collaborate and share resources, risks, and profits to pursue a specific project or venture.
  6. Multinational Corporation (MNC) [muhl-ti-nash-uh-nl kawr-puh-rey-shuhn]: A company that operates and has business activities in multiple countries, managing production, sales, and services on a global scale.
  7. Outsourcing [out-sawr-sing]: The practice of contracting or delegating certain business functions or processes to external vendors or service providers, often located in other countries, to reduce costs or focus on core competencies.
  8. Supply Chain Management [suh-pley cheyn man-ij-muhnt]: The coordination and oversight of all activities involved in the production, sourcing, procurement, and distribution of goods or services, ensuring efficient and timely delivery to customers.
  9. Wholly-Owned Subsidiary [ho-lee-ohned suhb-si-dee-er-ee]: A subsidiary company that is wholly owned and controlled by a parent company, providing the parent company with full control over operations and decision-making.

International Trade Finance

The financial aspects of international trade, such as payment methods, letters of credit, export financing, and managing currency risks.

  1. Bill of Lading [bil uhv ley-ding]: A legal document issued by a carrier that details the type, quantity, and destination of goods being shipped, serving as proof of shipment and a receipt of goods.
  2. Exchange Rate [ik-steynj reyt]: The rate at which one currency can be exchanged for another currency, determining the value of international transactions and affecting import and export prices.
  3. Incoterms [in-koh-terms]: International commercial terms published by the International Chamber of Commerce (ICC) that define the rights and obligations of buyers and sellers in international trade, including terms related to delivery, transportation, and risk allocation.
  4. Letter of Credit (L/C) [let-er uhv kred-it]: A financial instrument issued by a bank on behalf of a buyer that guarantees payment to the seller once specified conditions, such as the delivery of goods, are met.
  5. Trade Finance [treyd fahy-nans]: Financial instruments and products designed to facilitate international trade, including letters of credit, export financing, trade insurance, and factoring.

International Market Entry

Gain insights into strategies and considerations for entering new international markets, including market research, market segmentation, market entry modes, and competitive analysis.

  1. Export License [ek-sport lahy-suhns]: A government-issued document that grants permission to a company or individual to export certain goods or technologies, ensuring compliance with export regulations and controlling sensitive items.
  2. Foreign Market Entry Modes [for-in mahr-kit en-tree mohdz]: Different strategies or approaches used by companies to enter and establish a presence in foreign markets, such as exporting, licensing, joint ventures, or direct investment.
  3. Market Research [mahr-kit ri-surch]: The systematic gathering, analysis, and interpretation of data and information about target markets, customers, competitors, and industry trends to support business decision-making.
  4. Market Segmentation [mahr-kit seg-muhn-tey-shuhn]: The process of dividing a market into distinct and identifiable groups of consumers or businesses based on characteristics, needs, or preferences, allowing companies to tailor their marketing strategies and offerings.
  5. Market Share [mahr-kit shair]: The percentage or proportion of a market’s total sales or revenue that is captured by a company or brand, indicating its competitive position and market dominance.
  6. Pricing Strategy [prahy-sing strat-i-jee]: The approach or method used by a company to determine the price of its products or services in the marketplace, considering factors such as costs, competition, demand, and customer value perception.

Global Business Ethics and Sustainability

Examine the ethical and sustainable practices that shape international business, covering topics like corporate social responsibility, environmental stewardship, and ethical decision-making in a global context.

  1. Bribery [bry-buh-ree]: The act of offering, giving, receiving, or soliciting something of value, such as money or gifts, with the intention of influencing the actions or decisions of individuals in positions of power or authority.
  2. Corporate Social Responsibility (CSR) [kor-puh-rit soh-shuhl ri-spon-suh-bil-i-tee]: The voluntary actions and initiatives undertaken by a company to contribute to the well-being of society and the environment, beyond its legal obligations.
  3. Ethics [eth-iks]: The moral principles, values, and standards that guide individuals and businesses in making decisions and conducting their actions in an ethical and responsible manner.
  4. Sustainable Development [suh-stey-nuh-buhl di-vel-uhp-muhnt]: The balanced and responsible use of resources to meet the needs of the present generation without compromising the ability of future generations to meet their own needs, considering social, environmental, and economic factors.

International Business Law

Understand the legal frameworks and regulations governing international business transactions, including international contracts, intellectual property rights, dispute resolution, and compliance with international trade laws.

  1. Intellectual Property Rights (IPR) [in-tuh-lek-choo-uhl prop-er-tee raits]: Legal rights and protections granted to individuals or businesses for their inventions, creative works, trademarks, or trade secrets, preventing unauthorized use and promoting innovation.
  2. International Contracts [in-ter-nash-uh-nl kon-trakts]: Legally binding agreements between parties from different countries that establish the rights, obligations, and terms of a business transaction or relationship in an international context.
  3. Jurisdiction [joor-is-dik-shuhn]: The authority of a court or legal system to hear and determine legal matters, often based on geographic boundaries or specific subject matters.
  4. Trade Dispute [treyd dis-pyoot]: A disagreement or conflict between countries, companies, or individuals related to international trade, often involving issues such as tariffs, quotas, subsidies, or intellectual property rights.

Global Marketing and Advertising

Explore the nuances of marketing and advertising on a global scale, including cultural adaptation, global branding, market positioning, and international marketing campaigns.

  1. Branding [brand-ing]: The process of creating a distinct and recognizable identity, image, and reputation for a product, service, or company in the minds of consumers, influencing their purchasing decisions and loyalty.
  2. Global Advertising [gloh-buhl ad-ver-tahy-zing]: Advertising campaigns and strategies that are designed to reach and appeal to audiences across different countries and cultures, considering language, cultural norms, and preferences.
  3. Localization [loh-kuh-luh-zey-shuhn]: The process of adapting products, marketing strategies, or content to meet the specific needs, preferences, and cultural expectations of local markets and customers.
  4. Market Entry Strategy [mahr-kit en-tree strat-i-jee]: The plan or approach adopted by a company to enter and establish a presence in a new market, considering factors such as market analysis, competition, and resource allocation.
  5. Marketing Mix [mahr-kit-ing miks]: The combination of product, price, promotion, and place (distribution) strategies implemented by a company to meet customer needs, achieve marketing objectives, and gain a competitive advantage.

International Business Negotiations

Learn the art of effective negotiation in international business contexts, considering cultural differences, communication styles, and strategies for building successful international partnerships.

  1. Cultural Intelligence [kuhl-cher-uhl in-tel-i-juhns]: The ability to understand, adapt to, and work effectively with people from different cultural backgrounds, demonstrating respect, empathy, and flexibility in international business negotiations.
  2. Distributor [dih-stri-byoo-ter]: A company or individual that purchases and resells products to customers in a specific market or geographic area, often handling logistics, sales, and customer support on behalf of the manufacturer or supplier.
  3. Joint Negotiation [joint ni-goh-shee-ey-shuhn]: A negotiation process involving two or more parties working together to achieve a mutually beneficial outcome or agreement, combining resources, expertise, or interests.
  4. Power Distance [pou-er dis-tuhns]: A cultural dimension that reflects the extent to which less powerful members of a society accept and expect power to be distributed unequally, influencing communication and decision-making in international business negotiations.

Risk Management and Compliance

  1. Compliance [kuhm-plahy-uhns]: The adherence and conformity to laws, regulations, standards, or internal policies and procedures in order to ensure ethical practices, minimize legal risks, and maintain organizational integrity.
  2. Country Risk [kuhn-tree risk]: The risk and uncertainty associated with conducting business activities in a particular country, including political, economic, legal, and social factors that may impact business operations or investments.
  3. Foreign Exchange Risk [for-in ik-steynj risk]: The potential financial loss or uncertainty arising from fluctuations in exchange rates, affecting the value of international transactions and investments.
  4. Legal Risk [lee-guhl risk]: The potential exposure to legal actions, penalties, or liabilities due to non-compliance with laws, regulations, or contractual obligations in domestic or international business operations.
  5. Political Risk [puh-lit-i-kuhl risk]: The risk of adverse political events, actions, or instability in a country that may affect the profitability, operations, or assets of companies operating or investing in that country.

Logistics and Supply Chain

Gain insights into the management of global logistics and supply chain networks, including transportation, warehousing, inventory management, demand forecasting, and supply chain optimization.

  1. Freight Forwarder [freyt fawr-der]: A company or individual that specializes in arranging and coordinating the transportation of goods on behalf of exporters or importers, including documentation, customs clearance, and cargo insurance.
  2. Incoterms [in-koh-terms]: International commercial terms published by the International Chamber of Commerce (ICC) that define the rights and obligations of buyers and sellers in international trade, including terms related to delivery, transportation, and risk allocation.
  3. Logistics [loh-jis-tiks]: The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and information from point of origin to point of consumption, ensuring the right products are delivered to the right place, at the right time, and in the right condition.
  4. Supply Chain [suh-pley cheyn]: The interconnected network of organizations, resources, activities, and technologies involved in the production, distribution, and delivery of goods or services from suppliers to customers.
  5. Third-Party Logistics (3PL) [thurd pahr-tee loh-jis-tiks]: Companies or service providers that offer outsourced logistics and supply chain management services, including transportation, warehousing, inventory management, and order fulfillment.

International Business Strategy

Explore strategic decision-making in an international context, encompassing market expansion, competitive analysis, strategic alliances, and the development of sustainable global business strategies.

  1. Competitive Advantage [kuhm-pet-i-tiv ad-van-tij]: A unique set of resources, capabilities, or market positions that allows a company to outperform its competitors and achieve superior business performance.
  2. Diversification [dih-vur-suh-fi-key-shuhn]: The strategic expansion of a company’s operations, products, or markets into new and different areas, reducing dependence on a single product or market and spreading risk.
  3. Entry Barrier [en-tree bar-ee-er]: Factors or conditions that make it difficult for new companies to enter a particular market or industry, such as high capital requirements, strong brand loyalty, or strict regulations.
  4. Global Strategy [gloh-buhl strat-i-jee]: A strategic approach adopted by a company to compete and operate on a global scale, integrating and leveraging resources, capabilities, and market opportunities across different countries and regions.
  5. Market Penetration [mahr-kit pen-i-trey-shuhn]: The strategy of increasing market share and sales volume for existing products in existing markets, often through aggressive pricing, marketing, or distribution tactics.
  6. Strategic Alliance [struh-teej uh-lahy-uhns]: A cooperative agreement or partnership formed between two or more companies to pursue shared objectives, such as joint research and development, marketing, or distribution activities.

International Business Environment

  1. Economic Integration [ek-uh-nom-ik in-tuh-grey-shuhn]: The process of reducing trade barriers and integrating economies through agreements, such as customs unions, free trade areas, or economic unions, to promote regional or global economic cooperation and growth.
  2. Emerging Markets [ih-mur-jing mahr-kits]: Economies of developing countries that are experiencing rapid economic growth, industrialization, and market expansion, offering new business opportunities and potential market entry.
  3. Foreign Exchange Market [for-in ik-steynj mahr-kit]: The global decentralized market where currencies are traded, enabling the conversion of one currency into another and facilitating international trade and investment transactions.
  4. Global Economic Outlook [gloh-buhl ek-uh-nom-ik out-look]: The assessment, analysis, and forecast of the overall state and trends of the global economy, including factors such as GDP growth, inflation, employment, and trade indicators.
  5. Political Stability [puh-lit-i-kuhl stuh-bil-i-tee]: The condition in a country where the political system is predictable, peaceful, and without significant disruptions or risks, providing a favorable environment for business operations and investments.

International Business Networking

  1. Business Networking [biz-nis net-wur-king]: The process of establishing and nurturing relationships with individuals, companies, or organizations for the purpose of exchanging information, knowledge, resources, and opportunities to support business goals and growth.
  2. Cross-Cultural Competence [kros-kuhl-cher-uhl kom-pi-tuhns]: The ability to effectively interact, communicate, and work with individuals from different cultural backgrounds, demonstrating cultural sensitivity, adaptability, and understanding in international business settings.

Trade Agreements:

  1. Free Trade Agreement (FTA) [free treyd uh-gree-muhnt]: A bilateral or multilateral agreement between countries that aims to reduce or eliminate barriers to trade, such as tariffs and quotas, promoting the flow of goods and services between participating nations.
  2. World Trade Organization (WTO) [wurld treyd or-guh-nuh-zey-shuhn]: An international organization that sets the rules and regulations for global trade and resolves trade disputes between member countries, promoting open and fair trade practices.

Exporting and Importing Documentation

Navigate the intricacies of export and import documentation, including bills of lading, customs declarations, export/import licenses, and compliance with trade regulations.

  1. Bill of Lading [bil uhv ley-ding]: A document issued by a carrier to acknowledge the receipt of goods for shipment, providing details about the goods, their destination, and terms of transportation.
  2. Certificate of Origin [ser-tif-i-kit uhv or-i-jin]: A document that certifies the country in which the goods were manufactured, required for customs purposes and to claim preferential trade agreements.
  3. Commercial Invoice [kuh-mur-shuhl in-vois]: A document issued by the seller to the buyer, providing details of the goods being shipped, their value, and terms of sale.
  4. Customs Declaration [kuhs-tuhmz dek-luh-rey-shuhn]: A document submitted to customs authorities, declaring the nature, quantity, and value of the goods being imported or exported.
  5. Export License [ek-sport lahy-suhns]: A government-issued authorization allowing the export of certain goods, typically restricted for reasons such as national security or trade agreements.
  6. Import License [im-pawrt lahy-suhns]: A government-issued authorization permitting the import of specific goods, often required to control the inflow of certain products.
  7. Packing List [pak-ing list]: An itemized list that accompanies a shipment, detailing the contents, quantities, and packaging of each item.
  8. Proforma Invoice [proh-fawr-muh in-vois]: A preliminary invoice issued by the seller to the buyer before the actual shipment, providing details of the goods, their price, and terms of sale.
  9. Shipping Documentation [ship-ing dok-yuh-men-tey-shuhn]: Various documents required for the transportation and delivery of goods, including the bill of lading, packing list, and commercial invoice.
  10. Certificate of Insurance [ser-tif-i-kit uhv in-shoor-uhns]: A document issued by an insurance company to certify that the goods being shipped are insured against specified risks during transit.

Trade Finance and Payment Methods

  1. Cash in Advance [kash in uh-dvans]: A payment method in which the buyer makes full payment to the seller before the goods are shipped or delivered, providing the seller with reduced financial risk.
  2. Documentary Collection [dok-yuh-men-tuh-ree kuh-lek-shuhn]: A payment method in which the exporter’s bank collects payment from the importer’s bank on behalf of the exporter, releasing the shipping documents to the importer upon payment or acceptance of a draft.
  3. Open Account [oh-puhn uh-kount]: A payment method in which the exporter ships goods to the importer before receiving payment, relying on the importer’s promise to pay within an agreed-upon period, often used in established and trusted business relationships.

Global Market Research

  1. Demographics [dee-muh-graf-iks]: Statistical data about the characteristics of a population, such as age, gender, income, education, and ethnicity, used to identify target markets and understand consumer behavior.
  2. Market Entry Barrier [mahr-kit en-tree bar-ee-er]: Factors or conditions that make it difficult for new companies to enter a particular market or industry, such as high capital requirements, strong brand loyalty, or strict regulations.
  3. Primary Research [prahy-muh-ree ri-surch]: Research conducted firsthand by collecting new data directly from respondents or participants, such as through surveys, interviews, or observations, to gather specific and current market insights.

International Business Expansion

  1. Franchising [fran-chahy-zing]: A business model in which a company (franchisor) grants the rights to another party (franchisee) to operate under its established brand, business systems, and processes in exchange for fees or royalties.
  2. Joint Venture [joint ven-cher]: A business arrangement in which two or more companies form a separate legal entity to pursue a specific project or business activity together, sharing risks, resources, and profits.
  3. Merger and Acquisition (M&A) [mur-jer and uh-kwuh-zish-uhn]: The consolidation of two or more companies through a merger or the acquisition of one company by another, often aimed at achieving synergies, expanding market presence, or diversifying operations.

International Market Analysis

Learn the methodologies and tools used to analyze international markets, including market research, data analysis, market segmentation, and market trend identification.

  1. Competitive Analysis [kuhm-pet-i-tiv uh-nal-uh-sis]: The process of assessing and evaluating the strengths and weaknesses of competitors in a market, including their strategies, products, pricing, and market share, to identify opportunities and threats.
  2. Market Segmentation [mahr-kit seg-muhn-tey-shuhn]: The process of dividing a market into distinct and homogeneous groups of consumers with similar characteristics, needs, or buying behaviors, to better target marketing efforts and tailor offerings.
  3. SWOT Analysis [swot uh-nal-uh-sis]: An analysis technique that examines the internal strengths and weaknesses of a company, as well as the external opportunities and threats in the market, to evaluate its competitive position and develop strategies.

Definitions and pronunciations are for informational purposes only and may slightly for different contexts or regions.

To send your feedback, suggestions, or requests for including new words in our international business term definition list, please comment below or reach out to us on LinkedIn at BusinessTenet.

 

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