Pearson International Business: Environments and Operations 15th Edition, Chapter 1 – Flashcards
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Gobalization
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the widening set of interdependent relationships among people from different parts of a world that happens to be divided into nations
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International Business
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all commercial transactions that take place between two or more countries
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Born-global company
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a company that adopts a global orientation from inception
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clustering/agglomeration
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a theory that competitive companies may gain efficiencies by locating near each other
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sovereignty
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a country's freedom to "act locally" without imposed restrictions
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merchandise exports
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tangible products that are sent out of a country
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merchandise imports
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tangible products that are brought into a country
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service exports
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Internationally paid earnings other than those derived from exporting tangible goods
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service imports
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International payments for imports other than those for tangible goods
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turnkey operations
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construction projects performed under contract and transferred to owners when they are operational
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management contracts
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arrangements in which one company provides personnel to perform general or specialized management functions for another
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licensing agreements
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agreement whereby one company gives rights to another for he use, usually for a fee, of such assets as trademarks, patents, copyrights, or other know-how
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royalty
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payment for the uses of intangible assets
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franchising
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mode of business in which one party (the franchiser) allows another (the franchisee) to uses a trademark as an essential asset of the franchisee's business
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foreign direct investment (FDI)
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investment that gives the investor a controlling interest in a foreign company
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joint ventures
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an investment in which two or more companies share the ownership
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portfolio investment
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noncontolling financial interest in another entity
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collaborative arrangements
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a formal, long term contractual agreement among companies
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strategic alliance
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an agreement that is of critical importance to one or more partners or to an agreement that does not involve joint ownership
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multinational enterprise
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(MNE) any company with foreign direct investments
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other words for MNE
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multinational corporation, multinational company , transnational company (UN term)
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off shoring
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process of shipping productions to a foreign company
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reshoring
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a situation in which a firm bring operations back to its home country from abroad
