Term
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Definition
| the shrinkage of time and space as our travel of the electronic media has made it much easier for people of the global community to communicate with one another |
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Term
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Definition
| the buying and selling of products and services through computer networks |
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Term
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Definition
| how much is total U.S. e-commerce? |
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Term
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Definition
| the buying and selling of goods or services by people from different countries |
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Term
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Definition
| the management of business operations conducted in more than one country |
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Term
| the international business environment |
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Definition
| the fundamental tasks of business management, including the financing, production, and distribution of products and services, do not change in any substantive way when a firm is transacting business across international borders; however, a manager will experience greater difficulties and risks when performing management functions on a global scale |
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Term
1) Wal-Mart- warehouse concept in Hong Kong (4 lb. jar of peanut butter)
2) coors light- "turn it loose" (spanish)
3) Nike "just do it" (diff. languages)
4) United Airlines- white carnations in Hong Kong (white represents death) |
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Definition
| examples of businesses not translating well into other countries |
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Term
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Definition
| a ___ strategy means that its product design and advertising strategies are standardized throughout the world; this approach is based on the assumption that a single ____ market exists for most consumer and industrial products; the theory is that people everywhere want to buy the same products and live the same way; one product-everywhere (ex. Coca-Cola or Levi jeans |
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Term
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Definition
| seeks to achieve both global integration and national responsiveness; although increased competition means they must achieve global efficiency, growing pressure to meet local needs demands national responsiveness; most large multinational corporations w/diverse products will attempt to use a partial multi-domestic strategy for some product lines and global strategies for others (mixed global and locally adjusted products for each country) |
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Term
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Definition
| competition in each country is handled independently of industry competition in other countries; marketing, advertising, and product design are modified and adapted to the specific needs of each country; separate products for each country (ex. French do not drink OJ for breakfast, laundry detergent used to wash dishes in Mexico, ppl in the middle east prefer toothpaste that tastes spicy) |
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Term
methods of global entry
**1-8 high complexity, high commitment as you go up
**9-10 medium-low complexity, high commitment |
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Definition
1) outsourcing
2) exporting
3) licensing
4) franchising
5) alliances (joint ventures)
6) direct investing (buying existing companies)
7) wholly-owned subsidiaries (buying a full company)
8) greenfield venture
9) 50-50 partnership
10) camter trade (involves raw materials) |
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Term
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Definition
| global ___ means engaging in the international division of labor so that manufacturing can be done in countries with the cheapest sources of labor and supplies |
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Term
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Definition
| the corporation maintains its production facilities within the home nation and transfers its product for sale in foreign countries; exporting enables a country to market its products in other countries at modest resource cost and with limited risk |
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Term
licensing
(licensor; licensee) |
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Definition
| a corporation (the ___) in one country makes certain resources available to companies in another country (___); resources include technology, managerial skills, and/or patent and trademark rights; they enable the ___ to produce and market a product similar to what the ___ has been producing |
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Term
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Definition
| a form of licensing in which the ____ provides foreign ____ w/ a complete package of material and services, including equipment, products, product ingredients, trademark and trade name rights, managerial advice and a standardized operating system |
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Term
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Definition
| the most popular type of direct investment is to engage in strategic alliances and partnerships; a company shares costs and risks with another firm, typically in the host country, to develop new products, build a manufacturing facility or set up a sales and distribution network; a partnership is often the fastest, cheapest, and least risky way to get into the global game |
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Term
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Definition
| direct acquisition of an affiliate may provide cost savings over exporting by shortening distribution channels and reducing storage and transportation costs; local managers also have heightened awareness of economic, cultural, and political conditions |
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Term
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Definition
| the most costly and risky direct investment; a company builds a subsidiary from scratch in a foreign country; the advantage is that the subsidiary is exactly what the company wants and has the potential to be highly profitable |
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Term
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Definition
| ship goods produced in one country to be sold in another country |
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Term
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Definition
| bringing goods into an economy that are produced outside that economy |
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Term
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Definition
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Term
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Definition
| To label products "Made in the U.S.A.", the FTC requires at least ___ percent American parts to be used in the product |
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Term
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Definition
| plant owned by an American company, located in Mexico, that sells goods to American |
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Term
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Definition
any form of governmental or operational activity or restriction that renders importation of some goods into a country difficulty or impossible
(examples: tariffs, regulations, inspections) |
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Term
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Definition
| federal tax on imports or exports usually imposed either to raise revenue (revenue ___) or to protect domestic firms from import competition (import ___)--> a tax to help local businesses |
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Term
| non-tariff trade barriers |
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Definition
| quotas, voluntary export restrictions, government standards, government subsidiaries, customs valuation/classification, embargoes |
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Term
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Definition
| imposed limit upon the quantity of a good that may be brought into a country or economy over a period of time; can be imposed by the government, foreign governments, or producers themselves |
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Term
| voluntary export restrictions |
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Definition
| limit on the # of imported products, imposed by the exporting country |
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Term
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Definition
| product requirements that serve to limit the import of goods |
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Term
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Definition
| governemnts supporting local businesses directly (gov't. pays a farmer not to plant) |
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Term
| customs valuation/classification |
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Definition
| putting things in product categories, then restricting these categories (classifying) |
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Term
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Definition
| no import of a particular product |
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Term
| North American Free Trade Agreement |
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Definition
| what does NAFTA stand for? |
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Term
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Definition
| establishes liberal trading b/t the U.S., Canada, and Mexico; requires the gradual removal of tariffs and other trade barriers; created 2nd largest trading zone in the world |
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Term
| Free Trade Area of the Americas |
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Definition
| would create the world's largest trading zone, which will include North, South, and Central America; proposed agreement--unite 36 countries in North and South America (supposed to be done in 2005) |
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Term
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Definition
| 27 nation alliance creating a single marketplace and the Euro; eliminate existing barriers b/t countries; implement the Euro as a common currency |
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Term
| WTO (World Trade Organization); formerly GATT- General Agreement on Tariffs and Trade |
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Definition
| liberalizes trade among many nations and provides a framework for trade dispute resolution; handles trade disputes; monitors trade policies |
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Term
| CAFTA (Central America Free Trade Agreement); includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua |
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Definition
| the first step in creating the Free Trade Area of the Americas; market liberalization for the majority |
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Term
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Definition
| economists look at a set of items in different countries and compare; comparison of a standard set of goods and services in different countries--> more means greater growth potential |
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Term
| degree of global competition |
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Definition
| the # and quality of companies already in the market --> means less growth potential |
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Term
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Definition
| work force availability; company strategy, does workforce company strategy |
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Term
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Definition
| costs and barriers hiring employees; employee education and experience |
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Term
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Definition
| risk major changes in laws and government politics directed at businesses |
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Term
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Definition
| risk associated with changes in laws and government, ___ directed at businesses |
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Term
1) avoidance
2) control
3) cooperation |
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Definition
| name 3 strategies for minimizing political risk |
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Term
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Definition
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Term
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Definition
| reduce risk (limitations on company) |
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Term
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Definition
| limited risk (help and support business) |
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Term
1)growing markets
2)choosing an office/manufacturing location
3)minimizing political risk |
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Definition
| what do you consider when choosing a business climate? |
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Term
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Definition
| countries can be categorized as either "developing" or "developed." The developing countries are referred to as less-developed countries (LDC's). Per capital income is used to classify countries as developed or developing |
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Term
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Definition
| the income generated by the nations production of goods and services divided by the total population |
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Term
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Definition
True or False.
Most businesses are headquartered in the wealthier, economically advanced countries. |
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Term
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Definition
| a country's physical facilities that support economic activities make up it's ___; includes transportation facilities such as airports, highways, and railroads; energy-producing facilities such as utilities and power plants; and communication facilities such as telephone lines and radio stations |
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Term
| resource and product markets |
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Definition
| company managers must evaluate the market demand for their ___; ___ for providing needed raw materials and labor must also be available |
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Term
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Definition
| the rate at which one country's currency is exchanged for another country's; changes in the ___ can have major implications for the profitability of international operations; inflation and interest rates impact profitability as well |
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Term
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Definition
| a company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments; includes gov't. takeovers of property and acts of violence directed against a firm's properties or employees; companies must formulate plans and programs to guard against unexpected losses |
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Term
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Definition
| includes riots, revolutions, civil disorders, and frequent changes in government; increases uncertainty; although most companies prefer to do business in stable countries, some of the greatest growth opportunities lie in these areas |
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Term
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Definition
| host governemnts have many laws concerning libel statutes, consumer protection, information and labeling, employment and safety, and wages; the most visible changes in ___ grow out of international trade agreements and the emerging international trade alliance system (ex. GATT, EU, NAFTA) |
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Term
| 5 dimensions of of national value systems that influence organizational and employee working relationships |
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Definition
1) individualism (and collectivism)
2) power distance
3) uncertainty avoidance
4) masculinity/femininity (nurturing)
5) short-term orientation (vs. Long-term) |
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Term
| individualism (and collectivism) |
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Definition
| degree that individuals should be self-sufficient |
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Term
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Definition
| extent to which people in a country accept that power is distinguished unequally |
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Term
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Definition
| degree to which people are uncomfortable w/ambiguous or unpredictable situations |
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Term
| masculinity/femininity (nurturing) |
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Definition
| whether you have a highly assertive or highly nurturing culture |
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Term
| short-term orientation (vs. long-term) |
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Definition
| are we oriented towards the present or oriented towards the future |
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Term
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Definition
true or false.
Management styles are the same in all countries. |
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Term
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Definition
| purpose is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications |
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Term
| designed to assist in smoothing the flow of money b/t nations |
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Definition
| International Money Fund (IMF) |
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Term
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Definition
| shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people |
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Term
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Definition
| believe that their native country, culture, language, and behavior are superior to all others |
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Term
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Definition
| narrow view in which people see things solely through their own eyes |
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Term
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Definition
| take the view that native managers in the foreign offices best understand native personnel practice, and so the home office should leave them alone |
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Term
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Definition
| accept that there are differences and similarities b/t home and foreign personnel and practices and that they should use whatever techniques are most effective |
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