Chapter 17

Question 1

resources markets and competition are world wide in scope

Answer 1

global economy

Question 2

is the process of growing interdependence among elements of the global economy

Answer 2

globalization

Question 3

is the creation of domestic jobs y foreign employers

Answer 3

insourcing

Question 4

shifts local jobs to foreign locations to take advantage of lower wage labor in other countries

Answer 4

outsourcing

Question 5

conducts commercial transactions across national boundaries

Answer 5

international business

Question 6

firms purchase materials manufacturing or services around the world for local use

Answer 6

global sourcing

Question 7

is a network of a firm’s outsourcing suppliers and contractors

Answer 7

global supply chain

Question 8

moves foreign production and jobs back to domestic locations

Answer 8

reshoring

Question 9

local products are sold abroad

Answer 9

exporting

Question 10

is the process of acquiring products abroad and selling them in domestic markets

Answer 10

importing

Question 11

one firm pays a fee for rights to make or sell another company’s products

Answer 11

licensing

Question 12

a firm pays a fee for rights to use another company’s name and operating methods

Answer 12

franchising

Question 13

operates in a foreign country through co-ownership with local partners

Answer 13

joint venture

Question 14

each partner hops to achieve through cooperation things they couldn’t do alone

Answer 14

global strategic alliance

Question 15

is a local operation completely owned by a foregin firm

Answer 15

foreign subsidiary

Question 16

establishes a foreign subsidiary by building an entirely new operation in a foregin country

Answer 16

greenfeild venture

Question 17

is a golbal instituation established to promote free trade and open markets around the world

Answer 17

World Trade Organization

Question 18

gives a trading partner the most favorable treatment for imports and exports

Answer 18

Most favored nation status

Question 19

are taxes governments enact to discourage imports sucha s quotas and import restrictions

Answer 19

Nontarriff barriers

Question 20

is a call for tariffs and favorable treatments to protect domestic firms from foreign competition

Answer 20

Protectionism

Question 21

links Canada the Unites States and Mexico in an economic alliance

Answer 21

NAFTA - North American Free Trade Agreement

Question 22

is a political and economic alliance of 28 European Countries

Answer 22

EU - European Union

Question 23

that links 21 nations to promote free trade and investment in the pacific region

Answer 23

APEC - Asia Pacific Economic Cooperation

Question 24

links 14 southern African countries in trade and economic development efforts

Answer 24

SADC - Southern Africa Development Community

Question 25

has extensive international business dealings in many foreign countries

Answer 25

global corporation, multinational corporation

Question 26

is an MNC that operates world wide on a borderless basis

Answer 26

transnational corporation

Question 27

is where a large global firms gain disproportionately from the global economy versus smaller firms

Answer 27

globalization gap

Question 28

involves illegal practices to further on’s business interests

Answer 28

Corruption

Question 29

makes it illegal for US firms and their representatives to engage in corrupt practices overseas

Answer 29

Foreign Corrupt Practices Act

Question 30

employ workers at very low wages for long hours and in very poor working conditions

Answer 30

sweatshops

Question 31

is the full time employment of children for work otherwise done by adults

Answer 31

child labor

Question 32

is possible profit loss because of fluctuation exchange rates

Answer 32

currency risks

Question 33

is possible loss because of instability and political changes in foreign countries

Answer 33

political risks

Question 34

forecasts how political events many have an impact on foreign investments

Answer 34

political risk analysis

Question 35

is a culturally aware and informed on international affairs

Answer 35

global manager