Chapter 4 Flashcards
What is a global mindset?
The ability of managers to appreciate and influence individuals, groups, organizations, and system.
What is serving the bottom of the pyramid?
Approach for multinationals to do good, corporations can make large profits by selling to worlds poor.
What is outsourcing?
Also called offshoring work, activities are done in countries with cheap labor.
What is licensing?
Enabling a company to produce and market a product in another country.
What is direct investing?
High level of involvement, company manages and controls assets.
What is political risk?
The risk of lost assets, earning power, managerial control.
What is the General Agreement on Tariff and Trade (GATT)?
23 nations in 1947, set of rules for fair trade.
What is the World Trade Organization (WTO)?
Maturation of GATT into a permanent global institute.
What is the European Union?
1957 alliance to improve economic and social conditions among members, evolved to 28 nation European union.
What is the North American Free Trade Agreement (NATO)?
Merged the US, Canada, and Mexico into a single market.
What role does China have in US business?
Growing economy, businesses tend to be expanding into China.
What role does India have in US business?
India is becoming a large pharmaceutical producer, and labor is being outsourced there as they speak English.
What role does Brazil have in US businesses?
They have a large growing economy, large consumer spending.
What are the international environment dimensions?
Economic, legal-political, and sociocultural.
