Monthly Archives: August 2010

Outsourcing

Outsourcing is a very common business practice in the modern business world.  It basically means to pay people from outside of your company, often outside your country, to do work for you. For example, labor is relatively cheap in Vietnam … Continue reading

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Governemt Stimulus

When the economy goes bad, ie. many people are out of work (high unemployment rate) and the growth of the economy is slow, the government often does something to help the economy recover quickly.  This economic stimulation is called a … Continue reading

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Protectionism

Protectionism is when the government makes laws to benefit the companies in their own country. An example of protectionism would be when a government makes an “import tax” on all imported cars.  This makes cars from other countries artificially expensive.  … Continue reading

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Business Model

A company’s “business model” is the way that it makes money.  Examples are often the easiest way to truly understand a new term. The business model of most TV stations is to provide free shows to the audience and make … Continue reading

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Viral Marketing

Having a successful viral marketing campaign is the dream of any marketer or business person.  It is also called word of mouth advertising.  This is when a product is so good that people tell their friends about it.  These friends … Continue reading

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Leverage

Leverage is a really interesting and exciting concept in business. Using leverage makes work a lot easier.  It basically means to use something to your advantage in a good way.  A couple examples will make this easier to understand. Imagine … Continue reading

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Market Share

A company’s “market share” is an important concept in business. Market share is basically the % of the market that your company has.  Coke and Pepsi both have a large market share in the soft drink industry.  They are always … Continue reading

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Price Sensitivity

Price sensitivity is an economics term and concept.  It is an advanced business English term and a very useful one to know and use. Price sensitivity basically means how much a small change in price affects sales.  If something is … Continue reading

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Subsidize

To “subsidize” something means that someone else, often a government or company, is paying for all or some of the price of something.  Subsidies make things relatively cheap for the consumers. Here are a couple of common examples: 1.  University … Continue reading

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What is a Niche Market?

A “Niche Market” is a relatively small and very specific market. An example of a market might be “University students“.  It is not very specific.  A “Niche Market” in this category might be something like, “Female Asian university students studying … Continue reading

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