Chapter 2 Flashcards
Describe the U.S role in the world economy
Unique position in the world economy because of its size and political stability. 1/10 of the world’s exports of goods and services. 1/8 of world’s imports of goods and services. Prime market for development countries to raise their standards living through export-oriented development strategies. Prime market for high-income countries to attract business from its large, well educated middle class.
How do differences in income levels and income distribution among countries affect the international business?
Middle-income and Low-income countries are less attractive to international business because they offer less consumer demand and lack the public infrastructure necessary for reliable production and distribution of goods and services.
2-3. What role did MITI serve in the Japanese economy?
MITI has several special functions: controlling Japan’s foreign trade and supervising international commerce; ensuring the smooth flow of goods in the national economy; promoting the development of manufacturing, mining, and distribution industries; and supervising the procurement of a reliable supply of raw materials.
“What is a keiretsu?”
Keiretsu is a Japanese term referring to a business network made up of different companies, including manufacturers, supply chain partners, distributors, and occasionally financiers.
2-5. Who are the Four Tigers? Why are they important to international businesses.
The Four Asian Tigers are the high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan. All four economies have been fueled by exports and rapid industrialization, and have achieved high levels of economic growth since the 1960s.
“2-6. What is a chaebol?”
chaebol is a conglomerate of privately owned companies. Some examples of chaebol include Samsung, Hyundai, Daewoo, and Lucky-Goldstar. Leaders of chaebol may be related to each other or to top government officials through
The role of natural resources and agriculture in Africa’s economy
Agriculture is by far the single most important economic activity in Africa. It provides employment for about two-thirds of the continent’s working population and for each country contributes an average of 30 to 60 percent of gross domestic product and about 30 percent of the value of exports
The role of natural resources and agriculture in Africa’s economy
Agriculture is by far the single most important economic activity in Africa. It provides employment for about two-thirds of the continent’s working population and for each country contributes an average of 30 to 60 percent of gross domestic product and about 30 percent of the value of exports
How did import substitution policies affect the economies of Brazil and Argentina
They led to the government running a budget deficit. The result is inflammation and destruction of middle class savings. They eventually began to reverse their policies by lowering tariff barriers, sought free trade agreements with neighbors, privatized their industries and positioned economies to compete internationally
How did import substitution policies affect the economies of Brazil and Argentina
They led to the government running a budget deficit. The result is inflammation and destruction of middle class savings. They eventually began to reverse their policies by lowering tariff barriers, sought free trade agreements with neighbors, privatized their industries and positioned economies to compete internationally
