Global Biz-Exam 1 Flashcards
What is the Globalization of Production?
Firms source goods and services from locations around the globe.
What is an Emerging Market?
Are implementing more open trade and free market policies to compete with everyone from everywhere for everything
Decoupling?
How the emerging economies grow based on their underlying strengths rather than those highly-developed countries.
Multi-Polar World?
he idea that emerging economies will pull the world economy and not just the USA and Britain.
Global Institutions?
World trade Organization, World Bank, & IMF.
IMF?
Promote exchange rate stability.
World Bank?
Global integration through trade liberalization.
World Trade Organization?
Liberalized trade by lowering and or removing trade barriers.
Multilateral Trading System principles fostered by WTO agreements?
Trade without discrimination Increasingly freer trade Predictability of Trading relationships Promotion of fair trade Encouragement of economic reforms in developing countries
Institutional Structure and its impact on Globalization?
The rules, enforcement mechanisms, and organizations that support market transactions.
Impact of Globalization?
Demand for transparency, openness, and disclosure from political institutions.
Managing an international business differs from managing a domestic business because?
- countries are different
- the range of problems confronted in an international business is wider and the problems more complex than those in a domestic business
- firms have to find ways to work within the limits imposed by government intervention in the international trade and investment system.
What does Globalization mean for firms?
Lower barriers to trade and investment, Technological change, Media.
Foreign Direct Investment?
Inflows of capital from abroad for investing in domestic plant and equipment for the production of goods and or services and for buying domestic firms.
Benefits of trade theory?
Choice, Prices, Living Standards.
Smoot-Hawley Tariff?
(1930) - Protectionist measure to ensure domestic producers had a competitive advantage in their home markets.
Free Trade?
When governments do not participate in trade rules and regulations.
Endowments?
Land, Labor, & Capital
Regional Integration?
Economic and or political steps to increase global competitiveness for members
REI?
Regional economic Integration, areas of similar geographic countries band together for more trade.
What does REI encourage?
- Opens new markets
- Allows firms to realize cost economies by centralizing production in those locations where the mix of factor and skills is optimal
What does REI discourage?
- within each grouping, the business environment becomes competitive
- There is a risk of being shut out of the single market by the creation of a trade fortress
SACU?
ASEAN?
EAC?
SACU: South African Customs Union
ASEAN: Association of South East Asian Nations
EAC: East African Community
Spatial transformations?
the process of allowing efficient geographic distribution of business activities within and among countries