Chap 8 Flashcards
Which country is the world’s largest exporter of services and retailing?
United States
What are benefits of going global?
Additional revenue New insights into customer behavior Alternative distribution strategies Advance notice of new products Major key to achieving success in foreign markets.
Factors that determine a nation’s prospects as a host for international business expansion
Size
Per-capita income
Stage of economic development
What is an important economic factor to consider when planning to enter a foreign market?
Infrastructure
Exchange rate
Political Stability
What Act makes it illegal to bribe a foreign official in an attempt to solicit new or repeat sales abroad.
Foreign Corrupt Practices Act (US)
2 major categories of trade barriers
Tariffs
Administrative barriers
2 types of tarriffs
Revenue tariffs - designed to raise funds for the importing government
Protective tariffs - designed to raise the retail price of an imported product to match or exceed that of a similar domestic product
Other trade barriers:
import quotas - how many of units can cross the border
embargo - ban on import of specified products
subsidies - government financial support of a private industry
exchange control - method to regulate international trade among importing organizations by controlling access to foreign currencies.
What is US most gross sales?
Service Industry
A nations basic systems of transportation networks, communications systems and energy facilities form a part of its ____ environment
Economic
The _____ is a trade bloc that establishes a free trade area and a uniform tariff for trade with non member nations
Customs union
What is exporting?
marketing domestically produced goods and services in foreign countries
What is importing?
purchasing foreign goods and services
What transcends political, economic and cultural barriers to reach every corner of the globe?
the internet
What is the WTO?
World Trade Organization
