International Terminology
International Terminology
We will be discussing some of these organizations and terms in greater depth in Chapter 10, and other chapters; however, you will need to share the same understanding as we move forward.Global. This term is applied to a company that markets a standardized product worldwide with only minimum modifications to meet the demand of host countries. The value chain is comprised of a variety of functions including finance, marketing, advertising and others. When adopting global strategies, in order to achieve economies of scale, the company is able to provide very little differentiation in the value chain, product or service from host country to host country.
Multinational Company or Enterprise. [MMC or MNE]. This term is generally used to describe an organization at the other end of the continuum. MNC / MNEs own a large number of relatively autonomous subsidiaries. Their strategy, unlike the Global firm, is to establish almost freestanding clones of the parent company with only a few core value chain activities retained by the parent company.
International. A term used to describe an enterprise with only one or a few foreign subsidiaries.
Trans-National. This is an umbrella term used on occasion to describe a number of organizations including global and multinational corporations. Transnational firm’s attempt to capture the advantages of operating as a global firm while like an MNE being responsive to local needs and customs.
International Business. Refers to all business transactions between two or more entities from the public, private and not-for-profit sectors, including business transactions between governments and across boarders.
Gesellschaft mit beschrankter haftung (GmbH). A German public legal entity. A business organization with limitations on the scope of its activities.
Mittelstand. Most German firms are SMEs. In German they are called Mittelstand. There is no direct English equivalent for Mittelstand, a term that goes back to feudal times. The term also refers to a common work ethic and to the middle-class business people who employ about two-thirds of the German work force. Notwithstanding Mittelstand existed in Germany for centuries it was virtually eliminated by the communist in East Germany following the end of WW2. Today, the Mittelstand accounts for about half of the total industrial production of Germany. They are highly versatile and dynamic entrepreneurial enterprises.
Small- and mid-sized enterprises (SME). We will be referring to SMEs to include micro, small, and medium sized firms as defined by Statistics Canada.
| Number of Establishments in Canada by Employment Size Category and Region Goods-Producing Industries (NAICS 11 to 31-33) December 2003 |
||||
| Province or Territory |
Employment Size Category (Number of employees) |
|||
| Micro 1-4 |
Small 5-99 |
Medium 100-499 |
Large 500+ |
|
| Alberta |
22,358 |
11,901 |
784 |
64 |
| British Columbia |
21,855 | 12,305 | 687 | 52 |
| Manitoba |
5,202 |
3,333 |
197 |
22 |
| New Brunswick |
5,120 |
2,398 |
147 |
18 |
| Newfoundland and Labrador |
2,073 |
1,098 |
89 |
15 |
| Northwest Territories |
139 |
146 |
13 |
0 |
| Nova Scotia |
5,553 |
3,306 |
138 |
17 |
| Nunavut |
27 |
57 |
4 |
0 |
| Ontario |
39,840 |
30,692 |
2,711 |
262 |
| Prince Edward Island |
1,509 |
927 |
20 |
1 |
| Quebec |
37,398 |
17,007 |
1,443 |
139 |
| Saskatchewan |
8,460 |
3,460 |
121 |
10 |
| Yukon Territory |
200 |
97 |
4 |
0 |
| ¼br /> | ||||
| CANADA |
149,734 |
86,727 |
6,358 |
600 |
| Percent Distribution |
61.5% |
35.6% |
2.6% |
0.2% |
| Source: Statistics Canada, Business Patterns Database, December 2003 |
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In 2003, there were 243,419 employer establishments in the Goods-Producing Industries group. Of these employer establishments, 61.5% were considered micro-size, employing fewer than five employees. Small and medium-sized establishments accounted for an additional 38.2% of the total number of establishments. Large employers, those with more than five hundred persons on payroll accounted for 0.2% of the total establishments in the goods-producing industries. These statistics do not include the larger service industry.
Most Favoured Nation (MFN) status defines countries that have entered trade agreements that provide all partners with equal trade treatment.
National Treatment. When a trading partner’s goods or services enter a country’s market, the receiving country agrees to give them “national treatment” or treat them the same as their own national goods and services.
Transparency / Predictability. Countries agree to make all their trade practices “transparent” or “visible” to their trading partners, and avoid unfair or less visible practices, such as subsidizing industries or dumping products. Countries also agree to negotiate binding agreements that create a predictable trade environment so foreign companies and investors don’t have to worry about countries suddenly throwing up arbitrary barriers to trade.
You will also encounter these terms:
“Following current statistical practice, the World Bank has adopted the new terminology in line with the 1993 System of National Accounts (SNA). The changes in terms are listed below.
Previous terminology New terminology
Gross national product, GNP Gross national income, GNI
GNP per capita GNI per capita
Private consumption Household final consumption expenditure
General government consumption General government final consumption expenditure
Gross domestic investment Gross capital formation
Many countries continue to compile their national accounts according to the 1968 SNA, but more and more are adopting the 1993 SNA. A few low-income countries still use concepts from older SNA guidelines, including valuations such as factor cost, in describing major economic aggregates‿[1].