Chapter 1: Globalisation Flashcards Preview

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Flashcards in Chapter 1: Globalisation Deck (19):
1

International business

Commercial transaction that crosses the border of two or more nations.

2

Imports

Goods and services purchased abroad and brought into a country

3

Exports

Goods and services sold abroad and sent out of a country

4

Multinational corporation

Business that has direct investments abroad in multiple countries.

5

Born global firm

Company that adopts a global perspective and engages in international business from or near its inception.

6

Globalisation

Trend towards greater economic, cultural, political and technological interdependence among national institutions and economies.

7

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.

8

Sustainability

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

9

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

10

Forces driving globalisation

Falling barriers to trade and investment and technological innovation.

11

General agreement on Tariffs and Trade (GATT)

Treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

12

Non-tariff barriers

are limits on the quantity of imported product

13

World trade organization (WTO)

is the international organization that enforces the rules of international trade.

14

World bank

Agency created to provide financing for national economic development efforts.

15

International monetary fund

Agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system.

16

Gross Domestic Product (GDP)

Value of all goods and services produced by a domestic economy over a one-year period.

17

Domestic Gross National Product

Value of all goods and services produced by a country's domestic and international activities over a one year period.

18

GDP or GNP per capita

Nations GDP or GNP divided by its population.

19

E-business/e-commerce

Use of computer networks to purchase, sell or exchange products; to service customers; and to collaborate with partners.