Ch 3 Flashcards
Why Nations trade?
Absolute advantage. Cooperative advantage. Outsourcing.
What is absolute advantage ?
What’s comparative advantage?
What’s outsourcing?
In what consists ‘ international business?
What’s balance of trade?
What’s trade deficit? Negative/positive
What’s balance of payments ?
Is trade deficit bad?
Not necessarily,
What’s infrastructure?
How does economic development may happen?
What are the 4 international trade barriers?
Economic ethical legal political, social and cultural I technological barriers?
What are exchange rates?
Laws and regulations :
Import tariffs:
Fixed tariff:
Specific amount of money levied on each unit of product brought into country.
Advalorem tariff:
Protective tariffs:
Exchange controls:
Quota:
Limits the number of units of a particular product that can be imported into a country.
Embargo:
Prohibits trade in a particular product.
Dumping:
The act of a country or business sellin products at less than what to it costs produce them.
Profit of dumping?
To enter the market first.
Political barriers:
Seldom written down. Change rapidly, most consider relative instability of other countries.
What is cartels?
A group of firms or nations that agrees to act as a monopoly and not compete with each other.
What are some factors abt social and cultural barriers.
• Differences in spoken and written language.
• Differences in body language and personal space.
• Family roles differ in different societies.
• Perceptions of time differ in other nations.
• National and religious holidays and customs must be respected.
• Most nations use the metric system.
Factors abt technological barriers?
• Lack of technological infrastructure can create opportunities for business.
• Technological advances create global marketing opportunities.
• Changing technologies create new challenges and competition.
What’s the GATT?
What’s the WTO?
What’s the NAFTA?
What’s the usmca?
What’s the eu?
What’s the APEC?
What’s the ASEAN?
World bank:
International monetary fund :
Trading companies:
Exporting and importing:
Countertrade agreements :
Licensing:
Franchising:
Contract manufacturing?
Out sourcing:
Offshoring:
Joint venture and alliances:
Direct investment:
Multinational corporation:
Multinational strategy,
Global strategy? (Globalization)
Managing the challenges of global business.
Managers who can meet the challenges of creating and implementing effective and sensitive business strategies for the global marketplace can help lead their companies to success.
