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27 Cards in this Set
- Front
- Back
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Globalization is not a ____ thing |
new |
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1880,____,1900,____...Super Globalized |
1890, 1910 |
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___________ in goods and services has grown at a tremendous pace (faster than growth in total global output) |
International trade |
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There has been a ________ of trade (an explosion of regional trade agreements beginning in the 1900s) |
regionalization |
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New players are rising in prominence in _______ _______ (rapidly growing emerging economies impacting global trade in many ways)
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world trade |
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what increases presence in exports AND in FDI changing the direction of trade? |
New players in world trade |
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What is the definition of GDP |
(gross domestic product) the market value of all final goods and services produced within a country during a given time period |
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What is the formula for GDP? |
C+I+G+net exports(Net exports= X-M) |
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Export |
any good, commodity or service produced in the domestic country and then transported and sold abroad to consumers in a foreign country |
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Import |
any good, commodity or service produced in a foreign country and then transported and sold to consumers in the domestic country. |
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Net imports= |
total exports-total imports (NX= X-M) |
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GDP defines a country's _______ to the world economy as well as the effect of the world's economy on a country. |
contribution |
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Importing ______ the importing nations GDP (sends money out) |
decreases |
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Exporting ________ the exporting nation's GDP (brings money in) |
increases |
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Trade balance |
trade surplus vs. trade deficit |
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Trade Surplus |
when total exports > total imports |
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Trade deficit |
when total exports < total imports |
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The US is in a Trade ______ |
deficit |
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Portfolio investment (FPI) |
an investment made by an investor who is not involved in the management of a company(purchasing foreign capital for passive investment purposes) |
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Direct investment |
allows investor to exercise a certain degree of managerial control over a company (purchasing foreign capital for control purposes) |
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What are the 2 types of FDI? |
strategic alliance and joint venture |
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strategic alliance |
an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. This form of cooperation lies between mergers and acquisitions and organic growth. |
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Joint Venture |
a commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities. |
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licensing |
A business arrangement in which one company gives another company permission to manufacture its product for a specified payment. There are few faster or more profitable ways to grow your business than by licensing patents, trademarks, copyrights, designs, and other intellectual property to others.Ex. Walt Disney sells the right to make T-Shirts to sell to people in Mexico
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Franchising
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Franchising is a form of marketing and distribution in which the franchisor grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service under a franchisor's business format. Ex. Opening a McDonald's in another country other than the U.S
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Contract Manufacturing
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the outsourcing of certain production activities to a third-party that were previously performed by the manufacturer. A company may outsource the manufacture of certain components for the product or outsource the assembly of the product. A company makes the products and sells the product to a different company that then sells the products to you. Ex. Nike buys their products from a factory that is separate from them.
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Turnkey |
A situation in which a firm's high-level management plans and executes all business strategies to ensure that individuals can buy a franchise or business and only "turn the key" to begin operations. A turnkey business already has a proven, successful business model and merely requires investment capital and labor. Franchises are typically turnkey business, but any existing business that's already up and running successfully or a new business whose doors are ready to be opened could be considered a turnkey business. Ex. Bolivia wants to build a new nuclear plant but have no experience. They will hire a company to build the nuclear plant. The company will then “Turn over the key” to Bolivia.
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