Flashcards in Chapter 4 Notes Deck (38)
the trend of the world economy toward becoming a more interdependent system.
refers to the “shrinking” of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another.
the buying and selling of products and services through computer networks
refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets.
Why are mergers important for businesses?
To share the cost of research and streaming their production
a business firm with operations in several countries
a nonprofit organization with operations in several countries
believe that their native country, culture, language, and behavior are superior to all others.
a narrow view in which people see things solely through their own perspective.
take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective
manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens
defined as using suppliers OUTSIDE the COMPANY to provide goods and services
defined as using suppliers OUTSIDE the UNITED STATES to provide labor, goods, or services
Global outsourcing or offshoring
bartering goods for goods. when a country can't afford the goods
when a company allows a foreign company to pay it a fee to make or distribute the first company's product or service
a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services
known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country
a foreign subsidiary that is totally owned and controlled by an organization
a foreign subsidiary that the owning organization has built from scratch.
the movement of goods and services among nations without political or economic obstruction.
the use of government regulations to limit the import of goods and services
a trade barrier in the form of a customs duty, or tax, levied mainly on imports.
a trade barrier in the form of a limit on the numbers of a product that can be imported
When a company sells products abroad for a lower price than the at home
A ban on import or export of certain products
designed to monitor and enforce trade agreements
World Trade Organization
provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications
designed to assist in smoothing the flow of money between nations
International Monetary Fund
known as an economic community, is a group of nations within a geographical region that have agreed to remove trade barriers with one another.
a trading bloc consisting of the United States, Canada, and Mexico
North American Free Trade Agreement (NAFTA)
consists of 28 trading partners in Europe
the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people
preference for doing one thing at a time
preference for doing more than one thing at a time.
When a government takes over a foreign company or assets
Act which makes it illegal for employees of U.S. companies to make “questionable” or “dubious” contributions to political decision makers in foreign nations
Foreign Corrupt Practices act