General business

Test marketing is a widely-used technique typically used by businesses to assess whether they can introduce a new product to an existing market.

Broadly speaking, there are three routes to investing internationally: set up a wholly owned subsidiary, invest in an existing business or set up a company in partnership with an existing business.

Getting paid is often the hardest part of your international trade transaction. Even if you are used to taking payment up-front in your domestic market, you will find that much harder in an overseas market.

Many firms, especially those that focus on design and problem-solving, sub-contract the manufacture, and maybe other functions as well, to specialist contract manufacturers.

You have probably found that taking decisions is much easier when you have all the facts you need. Take the simple example of buying a birthday present for a relative or close friend and having to choose between the red one or the blue one.

There is much talk amongst trade economists of value chains, supply chains and market structure. Market structure refers to a market overall and you will hear terms such as monopoly, duopoly, oligopoly, imperfect competition, and oligopsony and monopsony.

Technology transfer and licensing are closely related but are subtly different. Licensing allows the licensee to make use of the licensor’s intellectual property. Often the licensee wants to license the use of a specific technology though they might also be able to license the rights to use a brand name or a trademark or even a piece of music.

When you make a capital investment, whether in equipment for your existing business or by investing in another business, you do so because you expect to generate income in the future. If this were not the case, you would not make the investment.

It is often helpful to split up funds within a business to show sources and applications. Sources show from where the money has come; applications show to where the money has gone.

Foreign direct investment (FDI) is an activity where an investor sets up or invests in an enterprise in a foreign country with the intention of acquiring a lasting interest and at least a degree of management control.