Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

International Business > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

fewer self-contained ++++++ with high barriers to trade and investment

A

national economies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

a more ++++++++ global economic system

A

integrated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

refers to the trend towards a more

integrated global economic system (and some would say a more socio-political integration as well)

A

Globalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Two key facets of globalization are:

A

the globalization of markets

the globalization of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

the merging of
historically distinct and separate national
markets into one huge global marketplace

A

Globalization of markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

In many markets today, the tastes and
preferences of consumers in different
nations are converging upon some

A

global norm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
  • the sourcing of
    goods and services from locations around the
    globe to take advantage of national differences
    in the cost and quality of factors of production
A

Globalization of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

(labor, energy, land, and capital)

A

factors of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Goal of Globalization of Production

A

: lower overall cost structure or improve
the quality or functionality of their product and
gain competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Global institutions are to:

A

manage, regulate, and police the global
market place
promote the establishment of multinational
treaties to govern the global business
system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  • polices world
    trading system and ensures nations adhere to the
    rules established in treaties
A

World Trade Organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

maintains

order in the international monetary system

A

International Monetary Fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

promotes economic development

A

the World Bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

maintains international
peace and security, develops friendly relations
among nations, cooperates in solving international
problems and promotes respect for human rights,
and is a center for harmonizing the actions of
nations

A

The United Nations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the drivers of globalization?

A

Declining trade and investment
barriers; Technological change; The Changing World Order; Changing Demographics of the Global Economy; Changing Foreign Direct Investment Picture
; The Changing Multinational Enterprise (MNEs or MNCs); Changing World Output and World Trade Picture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

International trade occurs when

A

a firm exports goods

or services to consumers in another country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Foreign direct investment (FDI) occurs when

A

a firm
invests resources in business activities outside its
home country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Arguments against globalization

A

free trade encourages firms from advanced nations to move manufacturing facilities offshore to less developed countries with lax environmental and labor regulations

Jobs in advanced countries are lost

economic power is shifting away from national governments and toward supranational organizations such as the WTO, the European Union (EU), and the UN

gap between rich and poor has gotten wider and the benefits of globalization are not shared equally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Arguments for globalization

A

while some jobs may be lost, the economy as a whole is better off

tougher environmental regulation and stricter labor standards reflect economic progress

the power of these organizations is limited to whatnation-states collectively agree to grant

actions of governments have made limited economic improvement in many countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Managing an international business differs

from a domestic business in four key ways:

A
  1. Differences require companies to vary practices
    country by country
  2. Managers face a greater and more complex range of
    problems
  3. Companies must work within the limits imposed by
    governmental intervention and the global trading
    system
  4. International transactions require converting funds and
    being susceptible to exchange rate risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How much foreign exchange transactions occur daily?

A

4 Trillion

22
Q

How much goods and services were sold accorss national boarders in 2011?

A

18.2 T goods 4.2 T services

23
Q

What are two factors that have led to the globalization of markets?

A

Falling barriers to cross-border trade and and the convergence on a global norm (preferences)

24
Q

How much of US Exports came from small businesses?

A

34%

25
Q

The most global markets trade in what type of good?

A

Commodities and industrial goods

26
Q

What are the factors of producton?

A

labor energy land capital

27
Q

Early outsourcing activities were originally linked to _________ type, but now due to the internet even _________ activities can be outsourced

A

Manufacturing; Service

28
Q

Robert Reich argues: “Increasing, the outsourcing of productive activities to different supppliers results in the creation of products that are global in nature. that is _____

A

Global Products

29
Q

What are some impediments to global trade?

A

formal and informal barriers to trade between contries, barriers to foreign direct invenstment, transport costs, and issues associated with with economic and political risk

30
Q

International treaty that committed signatories to lowering bariers in the free flow of goods accross national boarders and led to the WTO

A

General Agreement on Tariffs and Trade (GATT)

31
Q

What is the legacy of the WTO

A

Helping globalization of markets and production become possible

32
Q

What is the IMF

A

International Institution set up to maintain order in the international monetary system

33
Q

What is the World Bank?

A

INternational institution set up to promote general economic developpement in the world’s poorest nations

34
Q

What is G20

A

Finance ministers and central bank governors of the 19 largest economies in the world (and one from the EU and European Central Bank)

35
Q

2 Macro factors that undrlie the trend toward greater globalization

A

Decline of barriers in the free flow of goods, services and capital, and technological change

36
Q

Two main advances in technologo

A

Communication have become cheaper and easier (Telecomm and WWW) and transportation has become cheaper

37
Q

What caused lower transportation costs?

A

Containerization and cargo ships and Commercial jet aircraft

38
Q

Implications for the globalization of production (tech change):

A

Lower transportation costs make a geographically
dispersed production system more economical and
allow firms to better respond to international
customer demands

Low cost transportation enable firms to create
global markets, and facilitate the movement of
products from country to country promoting a
convergence of consumer tastes and preferences

Low cost communications networks help create
electronic global marketplaces

39
Q

Changing Demographics of the Global Economy

A

Declining (developed) vs Rising (emerging mkt) populations

40
Q

Changing Foreign Direct Investment Picture

A

Money shifting from developed economies to developing

41
Q

The Changing Multinational Enterprise (MNEs or MNCs)

A

More non-U.S. multinationals and mini multinationals

42
Q

What is an MNE

A

A firm that owns business operation in more than one country

43
Q

The Changing World Order

A

Collapse of communism, rise of China, Latin America

44
Q

Changing World Output and World Trade Picture

A

Shift to non-U.S. shares of global economy

45
Q

In the 1960s:

A

the U.S. dominated the world economy and
world trade and world FDI

U.S. multinationals dominated the international
business scene

about half the world– the centrally planned
economies of the communist world– was off
limits to Western international business

46
Q

In the 1960s, the US produced ______ world manufacturing output; _______ in 2008

A

40.3%; 20.7%

47
Q

What did countries start removing trade barriers

A

After WWII (GATT)

48
Q

what lowered the cost of global
communication and the cost of coordinating and
controlling a global organization

A

microprocessor

49
Q

The share of world output generated by

developing countries has been steadily _______ since the 1960s

A

increasing

50
Q

(total

cumulative value of foreign investments)

A

Stock of foreign investments

51
Q

The largest recipient of FDI

A

is China

International Business (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions