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What are six Legal Considerations concerning Global Trade?
- Tariff: a tax levied on the goods entering a country
- Quota: a limit on the amount of a specific product that can enter the country
- Boycott: The exclusion of all products from certain countries or companies
- Exchange Control: a law compelling a company earning foreign exchange from its exports to sell it to a control agency, usually a central bank
- Market Grouping: several countries agree to work together to form a common trade area that enhances trade opportunity (European Union EU)
- Trade Agreement: an agreement to stimulate international trade
What is The World Bank and the IMF?
- The World Bank offers low-interest loans to developing nations, originally with the purpose of helping the nation build infrastructure such as roads, etc. Now it is to help relieve their debt burdens-can get loan if lower trade barriers & aid private enterprise.
- The International Monetary Fund promotes trade through financial coop and attempts to eliminate trade barriers in the process. Makes short-term loans to member nations unable to meet budgetary expenses. Last resort for troubled nations.
What are six macroenvironmental forces influencing a company's breakthrough into a global market?
- Social Factors
What are the five primary methods companies use to enter the global market from least risk to highest risk?
- Contract Manufacturing
- Joint Venture
- Direct Investment