Ib, Ch1

Front 1

globalization

Back 1

refers to the shift toward a more integrated and interdependent world economy

Front 2

globalization of markets

Back 2

refers to the merging of histoircally distinct and separate national markets into one huge global marketplace

Front 3

globalization of production

Back 3

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

Front 4

General Agreemtn on Tariffs and Trade (GATT)

Back 4

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

Front 5

World Trade Organization

Back 5

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

Front 6

International Monetary Fund

Back 6

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

Front 7

World Bank

Back 7

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

Front 8

United Nations

Back 8

established October 24, 1945 by 51 countries committed to preserving peace through international cooperation and collective security, membership now 191 countries, has four purposes

Front 9

international trade

Back 9

occurs when a firm exports goods or services to consumers in another country

Front 10

foreign direct investment

Back 10

occurs when a firm invests resources in business activities outside its home country (starbucks)

Front 11

Moore's law

Back 11

predicts that the power of the microprocessor technology doubles and its cost of production falls in half every 18 months

Front 12

stock of foreign direct investment

Back 12

refers to the toal cumulative value of foreign investments

Front 13

multinational enterprise

Back 13

any business that has productive activities in two or more countries

Front 14

international business

Back 14

any firm that engages in international trade or investment