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1

the trend of the world economy toward becoming a more interdependent system.

Globalization

2

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.

Global Village

3

the buying and selling of products and services through computer networks

E-commerce

4

refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets.

Global Economy

5

Why are mergers important for businesses?

To share the cost of research and streaming their production

6

a business firm with operations in several countries

Multinational Coroporation

7

a nonprofit organization with operations in several countries

Multinational Organization

8

believe that their native country, culture, language, and behavior are superior to all others.

Ethnocentric Managers

9

a narrow view in which people see things solely through their own perspective.

Parochialism

10

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

Polycentric managers

11

accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

Geocentric Managers

12

manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens

maquiladoras

13

defined as using suppliers OUTSIDE the COMPANY to provide goods and services

Outsourcing

14

defined as using suppliers OUTSIDE the UNITED STATES to provide labor, goods, or services

Global outsourcing or offshoring

15

bartering goods for goods. when a country can't afford the goods

countertrading

16

when a company allows a foreign company to pay it a fee to make or distribute the first company's product or service

licensing

17

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

Franchising

18

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

joint venture

19

a foreign subsidiary that is totally owned and controlled by an organization

wholly-owned subsidiary

20

a foreign subsidiary that the owning organization has built from scratch.

greenfield venture

21

the movement of goods and services among nations without political or economic obstruction.

free trade

22

the use of government regulations to limit the import of goods and services

trade protectionism

23

a trade barrier in the form of a customs duty, or tax, levied mainly on imports.

Tariff

24

a trade barrier in the form of a limit on the numbers of a product that can be imported

Import quota

25

When a company sells products abroad for a lower price than the at home

Dumping

26

A ban on import or export of certain products

Embargo

27

designed to monitor and enforce trade agreements

World Trade Organization

28

provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications

World Bank

29

designed to assist in smoothing the flow of money between nations

International Monetary Fund

30

known as an economic community, is a group of nations within a geographical region that have agreed to remove trade barriers with one another.

Trading bloc

31

a trading bloc consisting of the United States, Canada, and Mexico

North American Free Trade Agreement (NAFTA)

32

consists of 28 trading partners in Europe

European Union

33

the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people

Culture

34

preference for doing one thing at a time

Monochronic Time

35

preference for doing more than one thing at a time.

Polychronic Time

36

When a government takes over a foreign company or assets

Expropriation

37

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

38

people living or working in a foreign country

Expatriates