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14 Cards in this Set

  • Front
  • Back
refers to the shift toward a more integrated and interdependent world economy
globalization of markets
refers to the merging of histoircally distinct and separate national markets into one huge global marketplace
globalization of production
refers to the sourcing of goods and services from locations around the glboe to take advantage of national differences in the cost and quality of factors of production
General Agreemtn on Tariffs and Trade (GATT)
global institution created to help manage, regulate, and police the global marketplace, and to promote the establishment of multinational treaties to govern the global business system
World Trade Organization
primarily responsible for policing the world trading sstem and making sure nation-states adhere to the rules laid down in trade treaties signed by WTO member states
International Monetary Fund
created in 1944 by 44 nations, task to maintain order in the international monetary system, lender of last resort to nation-states whose economies are in turmoil and currencies are losing value, requires nation-states to adopt specific economic policies aimed at returning their troubled economies to stability and growth
World Bank
created in 1944 by 44 nations, task to promote economic development, less controversial of the two, has focused on making low-interest-rate loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments
United Nations
established October 24, 1945 by 51 countries committed to preserving peace through international cooperation and collective security, membership now 191 countries, has four purposes
international trade
occurs when a firm exports goods or services to consumers in another country
foreign direct investment
occurs when a firm invests resources in business activities outside its home country (starbucks)
Moore's law
predicts that the power of the microprocessor technology doubles and its cost of production falls in half every 18 months
stock of foreign direct investment
refers to the toal cumulative value of foreign investments
multinational enterprise
any business that has productive activities in two or more countries
international business
any firm that engages in international trade or investment