Ch.2 - the global business enviornment Flashcards Preview

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Flashcards in Ch.2 - the global business enviornment Deck (24):
1

globaization

integration and interdependence of economic, technological, socioculturall and poliltical systems sacross diverse geographic regions

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GATT stands for

general agreement on tarrifs and trade

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what is the gatt

temporary measure to lower tariffs based on three principles - most favored nation status, national treatment consensus

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most favored nation status

one tariff rate granted to 1 member is granted to another

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WTO stands for

world trade organization

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ASEAN three goals

accel economic growth, promote social and cultural development, ensure peace and stability

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NAFTA

us canada mexico eliminate tariffs with one another

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MERCOSUR

argentina, brazil, paraguay, uraguay, venezuela promote economic growth and integration thru reduction of tariffs and free low of goods within region

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comparative advantage

economic theory proclaiming countries should speicalize in producing goods for which they have lowest oc of production - free trade leads to more efficient alocation of resources encouraging specialization- free trade leads to more efficient allocation of rsesourcces that encourae specialization

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external evniornemnt

represents all of external forces affecting firm's businesses

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two parts of firm's external evniornemnt includes

general enviornent and task enviornemnt

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general enviornemnt

includes technology, economic, political, legal, sociocultural dimensions affecting firm's external enviornment, production of outputs, includes tech behind firm's maufacturing line/hardware

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task enviornemnt

entities directly affecting firm on continus basis ie competitors, suppliers, customers

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economic dimension

includes gdp, inflation, unemployment, labor situation, currency etc

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political dimension

political events and activites in market affecting firm, legal dimension

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sociocultural dimension

demographic character as well as to values/customers of society-racial composition, aging, language, social values

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competitior

any orgaization creating G/s targeting at similar group of customers, technology globaliztion, innovation speed all affect this

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suppliers

provides resources /services to firm to help creation of products/services

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customers

people that buy firm's goods services

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internal enviornment includes

owners, board of directors, emploeyees culture

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owners

maintain legal control of organization

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board of directors

group of individuals elected by shareholders charge with overseeing general direction of rfirm

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employees

make rpoducts

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firm external enviornemnt

general, task, internal task eniornment