Pearson International Business: Environments and Operations 15th Edition, Chapter 1

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

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