Ch 1 Globalizationa & International Business

Question 0

International business

Answer 0

All commercial transactions including sales, investments, and transportation, that take place between two or more countries.

Question 1

Globalization

Answer 1

The widening set of interdependent relationships among people from different parts of the world that happens to be divided into nations

Question 2

Born – global companies

Answer 2

Start out with global focus because of their founders international experience and because advances in communications give them a good idea of where global markets and supplies are

Question 3

Clustering or agglomeration

Answer 3

Many new companies locate in areas with numerous competitors and suppliers

Question 4

G20 or Group of Twenty

Answer 4

19 of the world’s most important countries plus representation from the European Union of its members not included in the 19 that meet to discuss global conditions

Question 5

Sovereignty

Answer 5

Freedom to act locally and without externally imposed restrictions

Question 6

Reshoring

Answer 6

Bringing jobs back from over seas

Question 7

Merchandise exports

Answer 7

Tangible products or goods that are sent out of the country

Question 8

Merchandise imports

Answer 8

Goods brought into a country

Question 9

Service exports

Answer 9

Non-merchandise international earnings where the provider and receiver of payment makes a service export

Question 10

Service imports

Answer 10

Non-merchandise international earnings where the recipient and payer makes a service before

Question 11

Turnkey operations

Answer 11

Construction project performed under contract and transferred to owners when they’re operational

Question 12

Management contract

Answer 12

Arrangements in which one company provides personnel to perform general or specialize management functions for another, such as disease management of theme parks in France in Japan

Question 13

Licensing agreements

Answer 13

One company allows another to use its assets such as trademarks, patents, copyrights

Question 14

Royalties

Answer 14

Earnings off of licensing agreements

Question 15

What r the driving forces of globalization

Answer 15

Less pervasive - much of world lack resources to connect beyond their domain.

Size of country - small countries more globalized

Income of country - higher income population more globalized

Variance among globalization aspects - can be high in one area and low in another. Like US high technically but low economically

Question 16

Criticisms of globalization

Answer 16

Countries sovereignty is diminished - vulnerable to foreign mandate, difficult to maintain traditional ways.

The resultant growth hurts the environment - carbon footprint with 1000 container ships

Some people lose both relatively and absolutely - income inequality

Greater insecurity increases personal stress. - jobs & social status

Question 17

Criticisms of off shoring

Answer 17

Not much cost saving on consumer end, but increase to corporate and stakeholders

Labor income decrease yet profits increased

Trading good jobs for bad ones

When restoring occurs they higher labor at a Lower cost

Quality of jobs created offshore not good

Question 18

Franchising

Answer 18

Mode of business in which one party allows another to use a trademark as an Essential asset of the franchisees business

Question 19

Foreign direct investment

Answer 19

Investors take a controlling interest in a foreign company

Question 20

Joint venture

Answer 20

Two or more companies share ownership of a foreign direct investment the operation is a joint venture

Question 21

Portfolio investment

Answer 21

A noncontrolling financial interest in another entity

Question 22

Collaborative arrangements

Answer 22

Companies work together in joint ventures, licensing agreements, management contracts, minority ownership, and long-term contractual arrangements

Question 23

Strategic alliance

Answer 23

An agreement that is of critical importance to one or more partners or two in agreement that does not involve joint ownership

Question 24

Multinational enterprise (MNE)

Answer 24

Any company with foreign direct investment

Question 25

Multinational corporation (MNC)

Answer 25

Another term for multinational enterprise they also use translational company