Chapter 3 Flashcards
What is culture?
The accepted behaviors, customs, and values of a society
What four main factors must businesses consider when doing business in other countries?
Geography, cultural influences, economic development, and political and legal concers
What are the main cultural factors that affect international business?
Language, religion, values, customs, and social relationships
Balance of payment is
The amount of money a country brings in compared to the amount of money a country puts out.
Balance of trade is
Exports - imports. If positive, good balance of trade. If negative, bad balance of trade
Key factors that affect economic development are____
Literacy level, technology, and agricultural dependency
Infrastructure is
A nations transportation, communication, and utility systems
What are some ways government can restrict businesses?
High tariffs, embargoes, strict regulations, quotas
What are trade barriers?
They are restrictions to free trade
What is a quota?
A quota is a limit on the quantity of a product that may be imported or exported within a given period of time
Global strategy
Uses the same product and marketing strategy worldwide
Multinational strategy
Treats each country market differently
What is licensing?
It is selling the right to use a trademark, production process, brand name etc for a fee or royalty. Low financial return, low risk
What is a franchise?
It is the right to use a company name or business process in a specific way. Commonly involves selling a product or service
What is a join venture?
It is an agreement between two or more companies to share a business project
