Terminology relevant for this career area
IMPORTANT TERM
SIMPLE DEFINITION
International diversification
The attempt to reduce risk by investing in more than one nation.
Home replication strategy
The international replication of domestic competencies and strategies.
Multidomestic Strategy
An international marketing approach which focuses advertising and commercial efforts on the needs of a local market rather than taking a global approach.
Cyclical performance
A performance cycle which is strongly correlated to and affected by the business cycle.
Foreign Debt
Money borrowed by a government, corporation or private household from another country's government or private lenders.
Financial Bubbles
Economic cycles characterized by the rapid escalation of market value, particularly in the price of assets.
Exchange Rate Fundamentals
Fundamental variables which influence exchange rates, such as relative money supplies, outputs, inflation rates and interest rates.
Exchange Rate Convertibility
The ability to exchange one currency for another at a given conversion rate and the usability of a currency for foreign transactions.
Capital Controls
Measures taken by a government, central bank or other regulatory body to limit the flow of foreign capital in and out of the domestic economy.
Long-Term Growth Factors
Factors driving long-term economic growth, such as growth of productivity, demographic changes and labor force participation.
Demographics
Statistics that describe populations and their characteristics.
Foreign Direct Investment
An ownership stake in a foreign company or project made by an investor, company, or government from another country.
Immigration and Factor Mobility
The ability to move factors of production—labor, capital or land—out of one production process into another.
GDP per Capita
A country’s GDP divided by its total population.
Income Distribution
How a country’s GDP is distributed amongst its population.