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23 Cards in this Set
- Front
- Back
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Globalization
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the worldwide trend of economic integration across borders allowing businesses to expand beyond their domestic borders
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Multinational company (MNC)
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any company that engages in business functions beyond its domestic borders
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International Business
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When a company conducts any business functions beyond its domestic borders
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Developed economies
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mature economies with substantial per capital GDPs and international trade and investments
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Developing economies
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economies that have grown extensively over the past two decades
Hong Kong, Singapore, South Korea, Taiwan |
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Transition economies
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countries in the process of changing from government controlled economic systems to capitalistic systems
Czech Republic, Hungary, Poland, and Russia |
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Least developed countries (LDCs)
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the poorest nations, often plagued with unstable political regimes, high unemployment, and low worker skills
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Low-Cost Countries (LCCs)
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Countries usually, with cheap labor, that are becombing the manufacturing and service providers for MNCs headquartered in developed nations such as the United States
Brazil, Russia, India, China, Mexico |
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General Agreement on Tariffs and Trade (GATT)
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tariff negotiations between several nations that reduced the average worldwide tariff on manufactured goods
45% to 7% |
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World Trade Organization (WTO)
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A formal structure for continued negotiations to reduce trade barriers and to act as a mechanism for settling trade disputes
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Regional Trade Agreements
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agreements among nations in a particular region to reduce tariffs and develop similar technical and economic standards
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European Union
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European free trade area
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North American Free Trade Agreement (NAFTA)
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a multilateral treaty that links the United States, Canada, and Mexico in an economic bloc that allows freer exchange of goods and services
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Foreign Direct Investment (FDI)
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a multinational firm's ownership, in part of in whole, of an operation in another
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Rapid developing economies (RDEs)
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LCCs using the benefits of foreign investment to grow rapidly into world competitors
LCCs such as China, India, Mexico, and Brazil provide a low-cost production site but also have an expanding market for multinational slaes |
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Triad
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The world's dominant trading partner: the European Union, the United States, and Japan
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Outsourcing
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when a company in one country contracts with a company in another country to perform some business function
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Offshoring
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When a company in one country moves a business function such as manufacturing to another country, usually to take advantage of lower costs
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Multinational management
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the formulation of strategies and the design of management systems that successfully take advantage of international opportunities and respond to international threats
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Global Product
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the same product or service regardless of the nationality of the customer
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Global customers
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Global customers search the world for products or services without regard for national borders
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ISO 9001
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the current name for the technical and quality standards of the International Organization for Standardization
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Sustainable practices
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Business practices that minimize the impact of business operations on the earth's environment, thereby enhancing the ability of the earth's ecosystems to stay healthy and to continue functioning indefinitely
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