Flashcards in Chapter 1: Globalisation Deck (19):
Commercial transaction that crosses the border of two or more nations.
Goods and services purchased abroad and brought into a country
Goods and services sold abroad and sent out of a country
Business that has direct investments abroad in multiple countries.
Born global firm
Company that adopts a global perspective and engages in international business from or near its inception.
Trend towards greater economic, cultural, political and technological interdependence among national institutions and economies.
Globalisation of markets refers to the convergence in buyer preferences in markets around the world.
- Reduces marketing costs by standardizing marketing activities.
- Creates new market opportunities if its home market is small or becomes saturated.
-Levels uneven income streams, seasonal products can use international sales to level its income.
-Local buyers needs, the benefit of serving customers with an adapted product may out weigh the benefit of a standardized one.
- Global sustainability, meets the needs of the present without compromising future generations ability to meet their own needs.
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Globalisation of production refers to the dispersal of production activities to locations that help a company achieve its cost minimization or quality maximization objectives for a good or service.
-Access lower cost workers. I.e. call centres
-Access technological expertise I.e the Simpsons are animated in south korea
-Access production inputs. I.e. Japanese paper has forest and processing facilities in Australia
Forces driving globalisation
Falling barriers to trade and investment and technological innovation.
General agreement on Tariffs and Trade (GATT)
Treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.
are limits on the quantity of imported product
World trade organization (WTO)
is the international organization that enforces the rules of international trade.
Agency created to provide financing for national economic development efforts.
International monetary fund
Agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system.
Gross Domestic Product (GDP)
Value of all goods and services produced by a domestic economy over a one-year period.
Domestic Gross National Product
Value of all goods and services produced by a country's domestic and international activities over a one year period.
GDP or GNP per capita
Nations GDP or GNP divided by its population.