Chapter 1 Flashcards
1
Q
Four Trends Affecting Global Business
A
- Growth of the WTO and open trade agreements
- Developing countries moving toward free trade
- The Internet, cellular, and networked communication
- A mandate to manage the global environment for the future
2
Q
Why Globalization of markets increases?
A
- More foreign customers, competitors, suppliers
- Competition comes from domestic and foreign firms
3
Q
Balance of Payments¿
A
Record of all financial transactions with other countries, money that is constantly flowing in and out of the country.
4
Q
Barriers used for protection
A
- Tariffs
- Quotas
- Exchange barriers
- Psychological barriers
5
Q
Political System
A
The system of government in a nation, can be assessed according to two dimensions: collectivism or individualism; democratic or
totalitarian
6
Q
Market Economy
A
It is a type of economic system
7
Q
Production
A
Is determined by supply and demand
8
Q
Role of government is
A
To encourage vigorous free and fair competition
9
Q
Protectionism
A
Government policies that restrict international trade to help domestic industries.
