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| direct tax on imported goods |
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| quota, voluntary export restraints, government import standard, subsidies, customs classifications |
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| a set limit on the number or volume of imported products |
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| voluntary export restraints |
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| voluntary imposed limits on number or volume of products exported to a particular country (countries are usually forced into this - it is considered illegal by WTO) |
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| government import standard |
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| a standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict or ban imports |
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| government loans, grants and tax deferments given to domestic companies to protect them from foreign competition |
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| a classification assigned to imported products by govt officials that affects the size of the tariff and imposition of import quotas |
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Beer
Alcohol
Construction Equipment
Farm Machinery
Furniture
Medical Equipment
Paper
Pharmaceuticals
Steel
Toys |
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124 countries adopted, in effect 1947-1995
-purpose was "substantial reduction of tariffs and other trade barriers and the elimination of preferences"
-Cut tariffs 40% on average worldwide by 2005
-Stricter Limits placed on Govt Subsidies
-Established protections for intellectual property (implications important because of widespread global product piracy) |
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Definition
replaced GATT in 1995.
-Administered trade agreements
-Provides forum for trade negotiations
-Handles trade disputes
-Monitors national trade policies
-Offers technical assistance and training for developing countries (150 member countries)
-Trade disputes now fully settled by arbitration panels from WTO, all WTO rulings are complete and final, countries no longer have veto power |
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| lower power distance, low uncertainty avoidance (like and want change), individualism - higher individualism, US is more masculine, materialistic Sweden is more feminine |
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| Transformed the 12 different economies and currencies into one common European market called the European Union |
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| 12 original EU (Maastricht) countries |
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Definition
-Belgium
-Denmark
-France
-Germany
-Greece
-Ireland
-Italy
-Luxembourg
-Netherlands
-Portugal
-Spain
-United Kingdom |
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| 27 additional countries in Maastricht |
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Definition
| Austria, Finland, Sweden - 1995. Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia - 2004. Bulgaria and Romania - 2007 |
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"ours is better than theirs" belief
-place should be run in home country ways because those are best. managers see employees over there as inferior, do not trust them with key decisions. makes it more tightly controlled and simpler structure but management becomes more ineffective inflexible and there can be social and political backlash |
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| view that host country knows the best approaches and practices for running operations. managers see every operation in this way as different and hard to understand, likely to just let the foreign employees run things. this gives better knowledge of foreign market and workplace more support from host govt and you get committed local managers with high morale. but you also get duplication of work, reduced efficiency and becomes difficult to maintain global objectives because of intense focus on local traditions |
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| world-oriented view that uses best approaches from ppl around globe. managers with this view believe its important to have global view at HQ and home country and in various foreign workplaces. requires more sensitivity to differences in national customs and practices. forces understanding of global issues, balanced local and global objectives, best work approaches used regardless of origin but it is difficult to achieve and manager must have both local and global knowledge |
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proposed agreement to establish free trade zone throughout western hemisphere
-remove nontariff barriers
-reduce tariffs to zero
-standardize financial markets
-establish process for handling trade disputes |
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| when a multinational has offices, man plants and dist facilities in diff countries and runs them all using same rules, guidelines, policies and procedures |
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| when company changes their policies, guidelines etc to adapt to different foreign customers, govts & regulatory agencies |
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advantages:
-makes company less dependent on home sales
-provides greater degree of control over research, design and product decisions
disadvantages:
-many exported goods are subject to tariff and nontariff barriers
-transportation costs
-depend on foreign importers for distribution |
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| licensing and franchising |
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