Free WACE Business Management and Enterprise Flashcard Review

A strategic framework that examines Political, Economic, Social and Technological factors affecting a business. It is used to identify external opportunities and threats in a global or domestic environment.

The process by which businesses, ideas, technologies and financial systems increasingly operate across national borders, creating integrated global markets and reducing barriers to international trade and investment.

The WTO sets rules for international trade between nations, negotiates trade agreements, and resolves trade disputes between members. It aims to reduce tariffs and promote free trade.

A penalty or restriction imposed by one or more countries against another country, typically involving limits on trade, investment or financial transactions. Used to enforce international law or diplomatic objectives.

The removal or relaxation of government controls on financial institutions, transactions and services. Increases competition and may reduce costs but also increases financial risk.

A country or territory that offers extremely low or zero taxes on income, allowing businesses and individuals to reduce tax liability by establishing legal entities there.

The pricing of transactions between related entities within the same multinational corporation. Used to allocate profit across different countries and can reduce overall tax paid if prices are set to shift profit to low-tax jurisdictions.

A product developed, manufactured or branded domestically rather than imported. May offer competitive advantages such as cultural authenticity, local brand recognition or supply-chain control.

Contracting a business function or service to an external provider, often in another country. Reduces costs and allows the firm to focus on core competencies but introduces dependency and quality-control risks.

Employment of workers in countries other than the home country, typically where wages and labour standards are lower. Reduces labour costs but raises ethical and reputational concerns.

A commitment to reducing environmental harm from supply chains, manufacturing and operations. Includes sourcing sustainably, minimising waste and emissions, and complying with host-country environmental laws.

Direct financial assistance given by government to a business to support exports, capital investment or innovation. Does not need to be repaid but may come with conditions.

A formal treaty between two or more countries that removes or reduces tariffs, quotas and other trade barriers on goods and services between signatories.

The ASEAN–Australia–New Zealand Free Trade Agreement. It eliminates tariffs between Australia, New Zealand and ten Southeast Asian countries, expanding market access for exporters.

The Australia–New Zealand Closer Economic Relations Trade Agreement. A comprehensive FTA removing all tariffs between Australia and New Zealand, facilitating nearly free movement of goods and services.

The buying and selling of goods and services over the internet. Enables businesses to reach global customers without physical stores, but requires secure payment systems and reliable logistics.

A brand recognised and valued by consumers across multiple countries. Benefits include economies of scale, premium pricing power and consistent quality perception globally.

The habits and preferences of consumers regarding what they buy, when, how much and why. Vary by country due to income, culture, climate and values; critical for assessing foreign market feasibility.

The number, strength and strategies of rival firms operating in a target market. High competitor activity suggests market saturation and lower profitability; low activity indicates opportunity or lack of demand.

Offering the same product, price, promotion and distribution across all markets. Reduces costs and simplifies operations but may not suit diverse consumer preferences.