Chapter 4 Flashcards

1
Q

What is a global mindset?

A

The ability of managers to appreciate and influence individuals, groups, organizations, and system.

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2
Q

What is serving the bottom of the pyramid?

A

Approach for multinationals to do good, corporations can make large profits by selling to worlds poor.

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3
Q

What is outsourcing?

A

Also called offshoring work, activities are done in countries with cheap labor.

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4
Q

What is licensing?

A

Enabling a company to produce and market a product in another country.

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5
Q

What is direct investing?

A

High level of involvement, company manages and controls assets.

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6
Q

What is political risk?

A

The risk of lost assets, earning power, managerial control.

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7
Q

What is the General Agreement on Tariff and Trade (GATT)?

A

23 nations in 1947, set of rules for fair trade.

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8
Q

What is the World Trade Organization (WTO)?

A

Maturation of GATT into a permanent global institute.

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9
Q

What is the European Union?

A

1957 alliance to improve economic and social conditions among members, evolved to 28 nation European union.

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10
Q

What is the North American Free Trade Agreement (NATO)?

A

Merged the US, Canada, and Mexico into a single market.

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11
Q

What role does China have in US business?

A

Growing economy, businesses tend to be expanding into China.

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12
Q

What role does India have in US business?

A

India is becoming a large pharmaceutical producer, and labor is being outsourced there as they speak English.

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13
Q

What role does Brazil have in US businesses?

A

They have a large growing economy, large consumer spending.

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14
Q

What are the international environment dimensions?

A

Economic, legal-political, and sociocultural.

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