Topic 3

Word

Definition

Example

free trade

international trade left to its natural course without tariffs, quotas, or other restrictions

The government plans to establish a free trade zone near the new airport

export

to send goods to another country for sale

They export the product around the world.

import

a product that is brought from one country into another so that it can be soldthere, or the business of doing this

Most of our materials are imported from the far east.

visible

able to be seen

Results of his work are visible in all the product designs

balance of payments

the difference between the amount of money coming into a country, for example in payment for its exports, and the amount of money going out, for example to pay for its imports

Exports are expected to increase in the current quarter, which would improve Britain's balance of payments.

trade deficit

the amount by which the money going out of a country to pay for imports is more than the amount coming in from exports

I see a growing trade deficit and a reliance on overseas sources of innovation.

trade surplus

the amount by which the value of the goods that a country sells to other countries is more than the value of the goods it buys from them

We must rebuild manufacturing so as to generate a balance of trade surplus.

exchange rate

the value of one currency for the purpose of conversion to another

Exchange rates are changing fast.

protectionism

protecting a country's trade by taxing foreign goods

Protectionism usually increases the prices of basic goods to the consumer

tariff

a list of fixed prices charged by a hotel or restaurant, for example for the cost of meals or rooms

MMT-Tec's new tariff includes free videophoning and multimedia message services.

customs duty

a tax on goods brought into a country that is used to raise money for the government and to protect industries in the country from competition from abroad

Privately imported cars are subject to a 19% customs duty.

quota

an official limit on the amount of something

Quotas have been imposed on 25 categories of imported clothing

domestic market

market of some country

Expanding a country's domestic market would help manufacturing

open market

a market where foreign competitors are allowed

The main aim of the World Trade Organisation is to promote open markets worldwide.

World Trade Organisation

is an international organisation that encourages and regulates between its membe states.

Invited papers are prepared by United States, Norway and the World Trade Organisation.

flight of capital

capital sent abroad because of economic or political uncertainty

The interest rate rise should slow the flight of capital.

infrastructure

the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise

More money is needed to maintain the city's infrastructure.

deregulate

to remove or reduce the number of government controls on a particular business activity, done to make companies work more effectively and to increase competition

The pressure to deregulate came from inside the Stock Exchange.

dump

if one country dumps goods in another country, the first country exports a very large quantity of cheap goods to the second country

I'm going to dump my boyfriend this evening.

subsidy

money that is paid by a government or organization to make prices lower, reduce the cost of producing goods etc

Billions of dollars were given out in agricultural subsidies.

recession

a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters

A lot of companies have been adversely affected by the recession.

inward investment

investment in an area, country etc from another area or country

Inward investment into Wales had been the success story of the Welsh economy throughout the 1980s and 1990s.

law

the whole system of rules that people in a particular country or area must obey

Elected officials ought to obey the law.

regulation

a rule or directive made and maintained by an authority

There seem to be so many rules and regulations these days.

compete

strive to gain or win something by defeating or establishing superiority over others

New supermarkets need to compete with the supermarkets which are already there in the area.

competitor

the person or people you are trying to be better than

Its main competitor is Häagen-Dazs.

competitive edge

if a company has a competitive edge, it has advantages such as new skills or new technology which make it more likely to attract business than its competitors

United States domestic gas and electricity prices have been reduced, giving its industry a competitive edge.

competitive advantage

a condition or circumstance that puts a company in a favourable or superior business position

Our competitive advantage is that we provide a better service.

key player

one of the most important people or things involved in a particular organisation, event or situation

The former deputy chairman was a key player in a number of the deals that pushed the bank to the top of the list.

monopoly

a situation where a business activity is controlled by only one company or by the government and other companies do not compete with it

Many national airlines used to be monopolies, but this is no longer the case

market leader

the company selling the largest quantity of a particular product

The group is the world market leader in car electronics.

best-seller

a popular product, especially a book, that many people buy

The game is already a best-seller in Japan.

rival

a person or thing competing with another for the same objective or for superiority in the same field of activity

He had respect for his rivals.

global brand

a brand which is sold and recognised throughout the world

We are already familiar with global brands such as Coca-Cola, McDonalds and Microsoft.

align

to publicly support a political group, country, or person that you agree with

Church leaders have aligned themselves with the opposition.

core values

the principles that you consider to be most important, and which affect all aspects of what you do

The following list of core values reflects what is truly important to us as an organization.

standardize

to make all the things of one particular type the same as each other

Computer bulletin boards have become increasingly standardized in recent years.

product differentiation

when a company shows how its products are different from each other and from competing products, for examplein its advertising. Differentiation is important in telling buyers the advantages of one pro

To maintain product differentiation, the new models have all been styled distinctively.

product line

a group of related products produced by one manufacturer, for example products that are intended to be used for similar purposes or to be sold in similar kinds of shops

A well-known UK supermarket launches more than 1000 new product lines each year.

product mix

the combination of products that a company has to offer

The company blamed the drop in profits on its product mix, with increased sales of lower-priced.

prduct portfolio

all the products sold by a particular company

We intend to position Kambrook as a value brand within our current product portfolio.

product range

assortment

Apple added a new entry-level iMac to its product range, with prices starting at $899

target market

a particular group of consumers at which a product or service is aimed

Schools are a key target market for the apps.

marketing mix

a combination of factors that can be controlled by a company to influence consumers to purchase its products

Companies using video in their marketing mix show better results.

market conditions

are the state of a particular market at a particular time, for example whether there is a lot of demand for a product or little demand for it

In current market conditions, fundrising for biotechnology cmpanies is difficult.

direct marketing

any form of marketing where possible customers are contacted directly by the seller, for example by telephone or post

Direct marketing is the fastest growing sector of advertising.

marketing strategy

a plan of action designed to promote and sell a product or service

How can a start-up achieve its marketing strategy goals?

launch strategy

a general plan or set of plans intended to organise the launch of a product, for example, deciding on how it should be advertised, especially over a long period

Established new product development, test and launch strategies will need to be re-examined.

customize

if something is customized for a customer, it is designed, built etc specially for that customer, making it different to other things of the same kind

We provide both standard and customized training schemes.

country-specific

something that is country-specific relates to a particular country

These programs are to be country-specific.

customer profile

a description of the typical customer likely to be interested in a particular product

We have more than one asset-allocation model for different customer profiles.