Chapter 16 Vocabulary Flashcards Preview

MGMT Exam #4 > Chapter 16 Vocabulary > Flashcards

Flashcards in Chapter 16 Vocabulary Deck (36):
1

Resources, markets, and completion are worldwide in scope

Global economy

2

The process of growing interdependence among elements of the global economy

Globalization

3

The creation of domestic jobs by foreign employers

Insourcing

4

Shifts local jobs to foreign locations to take advantage of lower-wage labor in other countries

Outsourcing

5

Conducts commercial transactions across national boundaries

International business

6

Firms purchase materials, manufacturing, or services around the world for local use

Global sourcing

7

A network of a firm’s outsourcing suppliers and contractors

Global supply chain

8

Moves foreign production and jobs back to domestic locations

Reshoring

9

Local products are sold abroad

Exporting

10

The process of acquiring products abroad and selling them in domestic markets

Importing

11

One firm pays a fee for rights to make or sell another company’s products

Licensing

12

A firm pays a fee for rights to use another company’s name and operating methods

Franchising

13

Operates in a foreign country through co-ownership with local partners

Joint venture

14

Each partner hopes to achieve through cooperation things they couldn’t do alone

Global strategic alliance

15

A local operation completely owned by a foreign firm

Foreign subsidiary

16

Establishes a foreign subsidiary by building an entirely new operation in a foreign country

Greenfield venture

17

A global institution established to promote free trade and open markets around the world

World trade organization (WTO)

18

Gives a trading partner the most favorable treatment for imports and exports

Most favored nation status

19

Taxes governments levy on imports and exports

Tariffs

20

Nontax policies that governments enact to discourage imports, such as quotas and import restrictions

Nontariff barriers

21

A call for tariffs and favorable treatments to protect domestic firms from foreign competition

Protectionism

22

Links Canada, the United States and Mexico in an economic alliance

NAFTA (North American Free Trade Agreement)

23

A political and economic alliance of 28 European countries

EU (European Union)

24

Links 21 nations to promote free trade and investment in the pacific region

APEC (Asia-Pacific Economic Cooperation)

25

Links 14 southern African countries in trade and economic development efforts

SADC (Southern Africa Development Community)

26

Has extensive international business dealings in many foreign countries

Global corporation
Multinational Corporation (MNC)

27

An MNC that operates worldwide on a borderless basis

Transnational corporation

28

Where large global firms gain disproportionately from the global economy versus smaller firms

Globalization gap

29

Involves illegal practices to further one’s business interests

Corruption

30

Makes it illegal for U.S. firms and their representatives to engage in corrupt practices overseas

Foreign corrupt practices act

31

Employ workers at low wages, for long hours, and in poor working conditions

Sweatshops

32

The full-time employment of children for work otherwise done by adults

Child labor

33

Possible profit loss because of fluctuating exchange rates

Currency risk

34

Possible loss because of instability and political changes in foreign countries

Political risk

35

Forecasts how political events may have an impact on foreign investments

Political-risk Analysis

36

Culturally aware and informed on international affairs

Global manager