Ch 17 Flashcards
Global Economy
resources, markets, and competition are worldwide in scope
Globalization
process of growing interdependence among elements of the global economy
Insourcing
creating of domestic jobs by foreign employers
Outsourcing
shifts local jobs to foreign locations to take advantage of lower-wage labor in other countries
International Business
conducts commercial transactions across national boundries
Global Sourcing
firms purchase materials, manufacturing, or services around the world for local use
Global Supply Chain
network of a firm’s outsourcing suppliers and contractors
Reshoring
moves foreign production and jobs back to domestic locations
Exporting
local products are sold abroad
Importing
process of acquiring products abroad and selling them in domestic markets
Licensing
one firm pays a fee for rights to make or sell another company’s products
Franchising
foreign firm buys the rights to use another’s name and operating methods in its home country
Joint Venture
operates in a foreign country through co-ownership with local partners
Global Strategic Alliance
each partner hopes to achieve through cooperation things they couldn’t do alone
Foreign Subsidiary
local operation completely owned by a foreign firm
Greenfield Venture
establishes a foreign subsidiary by building an entirely new operation in a foreign country
Global Corporation or Multinational Corporation
extensive international business dealings in many foreign countries
Transnational Corporation
an MNC that operates worldwide on a border less basis
Globalization Gap
where large global firms gain disproportionately from the global economy versus smaller firms
Corruption
involves illegal practices to further one’s business interests
Foreign Corrupt Practices Act
makes it illegal for US firms and their representatives to engage in corrupt practices overseas
Sweatshops
employ workers at very low wages, for long hours, and in poor working conditions
Child Labor
full-time employment of children for work otherwise done by adults
Currency Risk
possible profit loss because of fluctuating exchange rates
Political Risk
possible loss because of instability and political changes in foreign countries
Politiccal-risk Analysis
forecasts how political events may have an impact on foreign investments
Global Area Structure
arranges production and sales functions into separate geographical units and puts top managers in charge- such as Area Manager Africa
Global Product Structure
gives worldwide responsibilities to product group managers who are assisted by area specialists who work as part of the corporate staff
Global Manager
culturally aware and informed on international affairs
What are Universal Facilitators of Leadership Success
- Acting trustworth, just, honest
- Showing foresight, planning
- Being positive, dynamic, motivating
- Inspiring confidence
- being informed and communicative
- being a coordinator and team builder
Universal Inhibitors of Leadership Success?
- being a loner
- acting uncooperative
- being irritable
- acting autocratic
In addition to gaining new markets, businesses often go international in the search for……
Lower Labor Costs
When boot-maker Rock Brands bought 70% ownership of a manufacturing company in the Dominican Republic, Rocky was engaging in what form of international business?
Joint Venture
When Limited Brands buys cotton in Egypt and has tops sewn from it in Sri Lanka according to designs made in Italy and then sells the tops at Victoria’s Secret stores in US this is a form of international business known as?
Global Sourcing
When foreign investment creates new jobs in the US this is a form of …… that is welcomed by the local economy
insourcing
When a Hong Kong firm makes an agreement with the Walt Disney Company to use the Disney logo and legally make jewelry in the shape of Disney cartoon characters, Disney is engaging in a form of international business known as
licensing
One Major difference between international business and transnational corporation is that they transnational tries to operate….
without a strong national identity
The Foreign Corrupt Practices Act makes it illegal for…
US businesses to make “payoffs” abroad to gain international business contracts
The World trade Organization or WTO would most likely become involved in disputes between countries over…
tariffs and protectionism
The athletic footwear maker New Balance discovered that exact copies of its running shoe designs were on sale in China under the name New Barlun. This is an example of ….. problem in international business
intellectual property rights
When the profit of large international businesses are disproportionately high relative to those of smaller firms and even the economies of some countries this is called…
the globalization gap
if a government seizes all foreign assets of global firms operating in the country, the loss of foreign firms is considered a ….risk of international business
political
Who gains most when the dollar weakens versus a foreign currancy such as the Brazilian real?
American firms selling products in Brazil
Which of the following is identified by researches as a universal inhibitor of leadership success across cultures
acting autocratic
If an international business firm has separate vice presidents in charge of its Asian, African, and European divisions, it is most likely using a global ……. structure
area
Which is the best definition of a truly “global manager?”
A manager who is competent working across cultures
