Global Business Chapter 1 Term – Flashcards
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globalization
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Definition: Trend away from distinct national economic units and toward one huge global market; the shift toward a more integrated and interdependent world economy.
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globalization of markets
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Definition: The merging of historically distinct and separate national markets into one huge global marketplace.
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globalization of production
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Definition: The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production.
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factors of production
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____________ _____ ____________ include labor, energy, land, and capital.
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GATT
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Definition: International treaty that committed signatories to lowering barriers to the free flow of goods across national borders.
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General Agreement on Tariffs and Trade
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What does GATT stand for?
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WTO
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Definition: Organization that succeeded GATT as a result of the successful completion of the Uruguay Round of GATT negotiations.
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World Trade Organization
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What does WTO stand for?
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World Bank
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Definition: International institution set up to promote general economic development in the world's poorer nations.
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United Nations
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Definition: An international organization made up of 191 countries and headquartered in New York City, formed in 1945 to promote peace, security, and cooperation.
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Moore's Law
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Definition: Predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months.
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stock of foreign direct investment
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Definition: The total cumulative value of foreign investments.
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multinational enterprise
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Definition: Any business that has productive activities in two or more countries.
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international business
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Definition: Any firm that engages in international trade or investment.
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international monetary fund (IMF)
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Definition: International institution set up to maintain order in the international monetary system
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International trade
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Definition Occurs when a firm exports goods or services to consumers in another country
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Foreign direct investment (FDI)
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Direct investment in business operations in a foreign country
