425 E1

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  1. commercial transaction that crosses the borders of two or more nations
    international business
  2. goods and services purchased abroad and brought into a country
  3. goods and services sold abroad and sent out of a country
  4. business that has direct investments abroad in multiple countries
    multinational corporation (MNC)
  5. company that adopts a global perspective and engages in international business from or near its inception
    born global firm
  6. trend toward greater economic, cultural, political, and technological interdependence among national institutions and economics
  7. development that meets the needs of the present without compromising the ability of future generations to meet their own needs
  8. treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade
    General Agreement on Tariffs and Trade (GATT)
  9. International organization that enforces the rules of international trade
    World Trade Organization (WTO)
  10. value of all goods and services produced b a domestic economy over a one-year period
    gross domestic product (GDP)
  11. value of all goods and services produced by a country's domestic and international activities over a one-year period
    gross national product (GNP)
  12. nation's GDP or GNP divided by its population
    GDP or GNP per capita
  13. agency created to provide financing for national economic development efforts
    World Bank
  14. Agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system
    International Monetary Fund
  15. use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners
    e-business (e-commerce)
  16. ____ is a primary driver of societal and commercial change today.
  17. Who are the key players in International Business?
    • Multinational corporations
    • Entrepreneurs and Small Businesses
  18. Two areas of business in which globalization is having profound effects are the globalization of _____ and _____.
    • markets
    • production
  19. _____ refers to the convergence in buyer preferences in markets around the world.
    globalization of markets
  20. ____ are products marketed in all countries essentially without any changes
    global products
  21. The globalization of markets is important to international business because of the benefits it offers companies. What are these benefits?
    • reduces marketing costs (by standardizing certain market activities)
    • creates new market opportunities (explore new markets when the home market is saturated)
    • levels uneven income streams (reduce variations in sales between seasons)
    • local buyer's needs (adapted product for different countries)
    • global sustainability (development that meets the needs of the present without compromising the ability for future generations to meet their own needs)
  22. What are the benefits that companies obtain from the globalization of production?
    • access lower-cost workers
    • access technical expertise
    • access production inputs
  23. The world's population lives in three different types of markets:
    • developed markets
    • emerging markets
    • traditional markets
  24. markets that include the world's established consumer markets; population is solidly middle class; infrastructure is highly developed and efficient
    developed markets
  25. markets that are racing to catch up to developed nations; population is migrating to cities for better pay and is overloading cities' infrastructures; rising incomes are increasing global demand for resources and basic products
    emerging markets
  26. globalization has bypassed these markets; population is mostly rural; infrastructure is very poor and there is little credit or collateral; people have almost no legal protections, and corruption prevails
    traditional markets
  27. What are the forces driving globalization?
    • falling barriers to trade and investment
    • technological innovation
  28. Groups opposed to globalization blame it for ____, _____, & _____.
    • eliminates jobs in developed nations (outsourcing jobs)
    • lowers wages in developed nations (worker dislocation)
    • exploits workers in low-wage nations
  29. Groups that are for globalization argue that it _____, ______, and _____.
    • increases wealth and efficiency in all nations
    • generates labor market flexibility in developed nations
    • advances the economics of developing nations
  30. International business is special because it occurs within a dynamic, integrated system that weaves together four distinct elements:
    • the forces of globalization
    • the international business environment
    • many national business environments
    • international firm management
  31. process whereby countries in a geographic region cooperate to reduce or eliminate barriers to the international flow of products, people, or capital
    regional economic integration (regionalism)
  32. economic integration whereby countries seek to remove all barriers to trade among themselves but where each country determines its own barriers against nonmembers
    free trade area
  33. economic integration whereby countries remove all barriers to trade among themselves and set a common trade policy against nonmembers
    customs union
  34. economic integration whereby countries remove all barriers to trade and to the movement of labor and capital among themselves and set a common trade policy against nonmembers
    common market
  35. economic integration whereby countries remove barriers to trade and the movement of labor and capital among members, set a common trade policy against nonmembers, and coordinate their economic policies
    economic union
  36. economic and political integration whereby countries coordinate aspects of their economic and political systems
    political union
  37. increase in the level of trade between nations that results from regional economic integration
    trade creation
  38. diversion of trade away from nations not belonging to a trading bloc and toward member nations
    trade diversion
  39. European union plan that established its own central bank and currency
    European monetary union
  40. What are five potential levels of economic and political integration for regional trading blocs?
    • Free Trade Area
    • Customs Union
    • Common Market
    • Economic Union
    • Political Union
  41. What are the benefits of regional integration?
    • trade creation
    • greater consensus
    • political cooperation
    • employment opportunities
  42. What are the drawbacks of regional integration?
    • trade diversion
    • shifts in employment
    • loss of national sovereignty
Card Set:
425 E1
2015-02-07 21:58:14
International Business
425 International Business
Exam 1 Materials
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