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36 Cards in this Set
- Front
- Back
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Global business |
the buying and selling of goods and services by people from different countries |
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Multinational corporation |
a corporation that owns businesses in two or more countries |
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Direct foreign investment |
a method of investment in which a company builds new business or buys an existing business in a foreign country |
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Trade Barriers |
government-imposed regulations that increase the cost and restrict the number of imported goods |
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Protectionism |
a government's use of trade barriers to shield domestic companies and their workers from foreign competition |
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Tariff |
a direct tax on imported goods |
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Nontariff barriers |
nontax methods of increasing the cost or reducing the volume of imported goods |
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Qouta |
a limit on the number or volume of imported products |
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Voluntary export restraints |
voluntarily imposed limits on the number or volume of products exported to a particular country |
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Government import standard |
a standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict imports |
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Subsidies |
government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition |
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Customs classification |
a classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas |
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General Agreement on Tariffs and Trade (GATT) |
a worldwide trade agreement that reduces and eliminated tariffs, limited government subsidies, and established protections for intellectual property |
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World Trade Organization (WTO) |
the successor of GAT; the only international organization dealing with the global rules of trade between nations. its main function is to ensure that trade flows as smoothly, predictably, and freely as possible |
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Regional trading zones |
areas in which tariff and nontariff barriers on trade between countries are reduced or eliminated |
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Maastricht treaty of Europe |
a regional trade agreement between most European countries |
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North American Free Trade Agreement (NAFTA) |
a regional trade agreement between the United States, Canada, and Mexico |
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Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) |
a regional trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States |
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Union of South American Nations (UN-ASUR) |
a regional trade agreement between Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Colombia, Ecuador, Peru, Guyana, Suriname, and Chile |
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Association of Southeast Asian Nations (ASEAN) |
a regional trade agreement between Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam |
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Asian Pacific Economic Cooperation (APEC) |
a regional trade agreement between Australia, Canada, Chile, the People's Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, the united States, and all the members of ASEAN except Cambodia, Loas, and Myanmar |
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Global consistency |
when a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures |
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Local adaptation |
modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies |
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Exporting |
selling domestically produced products to customers in foreign countries |
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Cooperative contract |
an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country |
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Licensing |
an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its services, or use its brand name in a specified foreign market |
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Franchise |
a collection o networked firms in which the manufacturer r marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee |
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Strategic alliance |
an agreement in which companies combine key resources, costs, risk, technology, and people |
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Joint venture |
a strategic alliance in which two existing companies collaborate to form a third, independent company |
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Wholly owned affiliates |
foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company |
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Global new ventures |
new companies that are founded with an active global strategy and have sales, employees, and financing in different countries |
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Purchasing Power |
the relative cost of a standard set of goods and services in different countries |
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Political uncertainty |
the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrests, or other influential events |
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Policy uncertainty |
the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business |
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National culture |
the set of shared values and beliefs that affect the perceptions, decisions, and behavior of the people from a particular country |
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Expatriate |
someone who lives and works outside his or her native country |
