Term
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Definition
| growing integration of the world's economy |
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Term
| Three important features of globalization |
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Definition
1. increasing importance of international trade
2. More and more multinational companies
3. More and more businesses thinking globally about their strategy |
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Term
| 5 factors contributing to growth of globalization |
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Definition
technological change
reduction of transportation costs
deregulation of business
consumer taste changes
growth of new market and competition |
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Term
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Definition
| organization which owns or controls production or service facilities outside the country in which it is based. This means they do not just export, but actually produce their products in other countries |
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Term
| MNC generally in _____ countries |
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Definition
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Term
| 4 reasons why a company may become multinational |
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Definition
1. Avoid protectionist policies on trade
2. Realize globalization of the market and enjoy large scale economy
3. realize diversification of markets and spread risks of operation
4. take advantage of info technology and high speed travel |
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Term
| Pros of multinational company on host country |
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Definition
creating new job opportunities
improve living standards
create competition for domestic businesses and cause them toimprove efficiecny
bring new technology bring new mannagement ideas and styles
improve balance of international payments if exporting |
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Term
| Problems for a local country |
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Definition
resulting in some local firms to close plants or cut down employees
affecting the balance of payments if the multinational company imports huge amount of components from other countries
causing difficulties in government control because of the storng power of business
causing environmental problems |
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Term
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Definition
| central to global efforts to solve problems that challenge humanity. (30 affiliated organization) |
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Term
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Definition
promote respect for human rights
protect the environment
fight disease and reduce poverty
define standards for safe and efficient air travel
help improve telecommunications and enhance consueme protection |
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Term
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Definition
| vital source of financial and technical assistance to developing countries around the world |
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Term
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Definition
Internatioanl Bank for Reconstruction and Development (middle income and credit worthy poor)
International Development Association (poorest countries) both provide low interest loans and interest free credits |
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Term
| International Monetary Fund |
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Definition
| 185 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment, and and reduce povery |
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Term
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Definition
| brings together government of countries who luv democracy |
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