Englisch II

Outsourcing (also called ‘contract manufacturing’) happens when an international company uses a low-cost manufacturer in another country, and then sells the products under its own brand name in other markets.

Protectionism is the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports.

Quota is a word for limits on the quantity of good that can be imported.

Red tape is a less formal word for bureaucracy.

Slump is a synonym of depression.

Subsidy means money paid by a government to support it.

Subsidiary happens when a company is owned by another company. ‘Foreign subsidiary’ comprises a parent company which directly owns a company in another country. Business operations are under control of local management, although Head Office is responsible for global strategy.

Strategic alliance is a long-term partnership between two companies of very different sizes, such as a large manufacturer and one of its suppliers. Unlike in a joint venture there is usually no sharing of cost, risks, management or profits.

Tariff is a technical word for taxes on imported goods.