Term
|
Definition
| the trend of the world economy becoming a more interdependent system (the world is shrinking) |
|
|
Term
|
Definition
refers to the shrinking of time and space
happens through advanced communication and travel innovation |
|
|
Term
|
Definition
| buying/selling of products or services through computer networks |
|
|
Term
|
Definition
| the ability of people, goods and money to move freely throughout the world; economies of the world interact with one another |
|
|
Term
| Advantages to Global Economy |
|
Definition
New markets
Lower consumer prices
Greater variety of products
More investment opportunites
Lower labor cost
International capital |
|
|
Term
| Disadvantages to Global Economy |
|
Definition
outsourcing of well paid jobs
economic security
improperly invested money |
|
|
Term
| 5 ways to expand globally |
|
Definition
global outsourcing
importing/exporting
licensing/ franchising
joint ventures
wholly-owned subsidaries |
|
|
Term
|
Definition
|
using suppliers outside the U.S. to provide labor, goods, or services
|
|
|
Term
| Importing, exporting, countertrading |
|
Definition
ADVS
minimize risk
maximize control
increase market potential
DISADVS
tariff/non-tariff barriers
Transport costs
|
|
|
Term
|
Definition
|
A domestic company receives royalty payments for allowing another company to produce its product, sell
a service, or use its brand name in a specified foreign market
|
|
|
Term
|
Definition
| A collection of networked firms in which the manufacturer or marketer of a product/service licenses the entire business to another person or organization |
|
|
Term
|
Definition
| totally owned and controlled by an organization |
|
|
Term
| Barriers to International Trade |
|
Definition
|
Government Import Standards—Product requirements that limit imports
Customs Valuation—classification of products that determine amount of tariff
Tariffs--customs duty, or tax, levied mainly on imports
Import quotas--limits on the numbers of a product that can be imported
Embargoes--complete ban on the import or export of certain products
|
|
|
Term
| Organizations that Promote National Trade |
|
Definition
WTO - World Trade Organization (replaced GATT)
World Bank
IMF- International Money Fund |
|
|
Term
|
Definition
NAFTA
European Union
APEC (pacific rim)
ASEAN (asia)
CAFTA |
|
|
Term
| Hofstede's Cultural Dimensions |
|
Definition
Power Distance- how authority is viewed
Individualism
Masculinity/Femininity
Uncertainty Avoidance- avoiding risk
Short term/ Long term Orientation
|
|
|
Term
|
Definition
| native country, language and culture are superior to all others |
|
|
Term
|
Definition
| accepts differences between cultures and uses whatever practices work best |
|
|
Term
|
Definition
| only native managers best understand native cultures |
|
|
Term
|
Definition
| narrow view in which people only think through their own perspective |
|
|
