25 Global Business Expansion Terms

Internationalization: The process of designing products and services so that they can easily be adapted to various international markets.

Globalization: The process of businesses operating on a global scale, beyond their local or national boundaries.

Market Entry Strategy: The planned method of delivering goods or services to a new target market and distributing them there.

Cross-Cultural Competence: The ability to understand and effectively interact with people from different cultural backgrounds.

Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.

Exporting: Selling domestic goods or services to foreign countries.

Importing: Buying goods or services from foreign countries to use or sell in the domestic market.

Offshoring: Relocating a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, like accounting.

Outsourcing: Contracting out a business process to another party and may involve offshoring.

Multinational Corporation (MNC): A corporate organization that owns or controls production of goods or services in at least one country other than its home country.

Joint Venture: A business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

Franchising: A method of doing business wherein a franchisor licenses trademarks and methods of doing business to a franchisee in exchange for a recurring royalty fee.

Tariffs and Trade Barriers: Taxes on imports or exports between sovereign states and restrictions or limitations on trade between nations.

Global Supply Chain: A dynamic worldwide network when a company purchases or uses goods or services from overseas.

Currency Exchange Rates: The value of one currency for the purpose of conversion to another.

Cultural Adaptation: Modifying products or services to accommodate cultural differences in foreign markets.

International Trade Regulations: Laws and standards governing trade between countries.

Emerging Markets: Nations with social or business activity in the process of rapid growth and industrialization.

Localization: The process of adapting a product or content to a specific locale or market.

Trade Agreements: Bilateral or multilateral agreements regulating trade between countries.

Global Marketing: The process of conceptualizing and then conveying a final product or service worldwide with the hopes of reaching the international marketing community.

Transfer Pricing: Setting the price for goods and services sold between controlled (or related) legal entities within an enterprise.

Compliance and Ethics: Adhering to laws, regulations, standards, and ethical practices globally.

Expatriate Management: Handling the relocation, employment, and repatriation of employees working in a country other than their native country.

Global Strategic Partnerships: Collaborations between companies across national boundaries and industries.