Flashcards in Chapter 4 Notes Deck (38)
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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
