Org mang. Chapter 17- Globalization and International Business – Flashcards
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Cultural awareness
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reflects attitudes of superiority
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how does globalization affect international business
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involves the growing interdependence of the world's economy's, creates a variety of international business opportunities, done by global sourcing, import exports, licensing and franchising, done by joint ventures and wholly owned subsidiaries, international business is complicated by different legal and political systems
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global ecomomy
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resources, markets, and competition are worldwide in scope
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globalization
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the process of growing independence among elements of the global economy
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insourcing
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the creation of domestic jobs by foreign employers
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outsourcing
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shifts local jobs to foreign locations to take advantage of lower-wage labor in other countries
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international business
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conducts commercial transactions across national boundaries
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why business go global
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profits, customers, suppliers, capital, labor, risk
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market entry strategies
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global sourcing, exporting and importing, licensing and franchising
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direct investment strategies
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joint ventures and foreign subsides
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global sourcing
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firms purchase materials or services around the world for local use
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exporting
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local products are sold abroad
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importing
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the process of acquiring products aboard and selling them in domestic markets
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licensing
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one firm pays a fee for rights to make or sell another company's products
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franchising
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a firm pays a fee for rights to use another company's name and operating methods
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joint venture
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operates in a foreign country through co-ownership with local partners
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global strategic alliance
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each partner hopes to achieve through cooperation things they couldn't do alone
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foreign subsidiary
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a local operation completely owned by a foreign film
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green field venture
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establishes a foreign subsidiary by building an entirely new operation in a foreign country
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World Trade Organization
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WTO. global institution established to promote free trade and open markets around the world
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most favored nation status
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gives a trading partner the most favorable treatment for imports and exports
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tariffs
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are taxed government levy on imports abroad
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non tariff barriers
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non tax policies that government enact to discourage imports, such as quotas and import restrictions
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protectionism
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a call for tariffs and favorable treatments to protect domestic firms from foreign competition
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what are global corporations and how do they work?
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global corp. or MNCs do substation business in many countries the actions of global cop. can be controversial at home and abroad managers face ethical challenges planning and controlling are complicated organizing can be difficult leading is challenging
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global corporation/multinational corporations (MNC)
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has extensive international business dealing in many foreign countries
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transnational corporation
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is an MNC that operates worldwide on a borderless basis
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globalization gap
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involves large global firms gaining disproportionately from the global economic verses smaller firms and many countries
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foreign corrupt practices act
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make it illegal for US firms and their representatives to engage in corrupt practices over seas
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sweatshops
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workers work low wages, long hours, poor conditions
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currency risk
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possible loss because of fluctuating exchange rates
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political risk
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possible loss because of instability and political changes in foreign countries
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pliotical risk anaylis
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forecasts how political event may impact foreign investment
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global manager
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culturally aware and informed or international affairs
