Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Global Business > Global Biz-Exam 1 > Flashcards

Global Biz-Exam 1 Flashcards

1
Q

What is the Globalization of Production?

A

Firms source goods and services from locations around the globe.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is an Emerging Market?

A

Are implementing more open trade and free market policies to compete with everyone from everywhere for everything

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Decoupling?

A

How the emerging economies grow based on their underlying strengths rather than those highly-developed countries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Multi-Polar World?

A

he idea that emerging economies will pull the world economy and not just the USA and Britain.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Global Institutions?

A

World trade Organization, World Bank, & IMF.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

IMF?

A

Promote exchange rate stability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

World Bank?

A

Global integration through trade liberalization.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

World Trade Organization?

A

Liberalized trade by lowering and or removing trade barriers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Multilateral Trading System principles fostered by WTO agreements?

A 
Trade without discrimination
Increasingly freer trade
Predictability of Trading relationships
Promotion of fair trade
Encouragement of economic reforms in developing countries
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Institutional Structure and its impact on Globalization?

A

The rules, enforcement mechanisms, and organizations that support market transactions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Impact of Globalization?

A

Demand for transparency, openness, and disclosure from political institutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Managing an international business differs from managing a domestic business because?

A
  • 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.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does Globalization mean for firms?

A

Lower barriers to trade and investment, Technological change, Media.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Foreign Direct Investment?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Benefits of trade theory?

A

Choice, Prices, Living Standards.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Smoot-Hawley Tariff?

A

(1930) - Protectionist measure to ensure domestic producers had a competitive advantage in their home markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Free Trade?

A

When governments do not participate in trade rules and regulations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Endowments?

A

Land, Labor, & Capital

19
Q

Regional Integration?

A

Economic and or political steps to increase global competitiveness for members

20
Q

REI?

A

Regional economic Integration, areas of similar geographic countries band together for more trade.

21
Q

What does REI encourage?

A
  • Opens new markets
  • Allows firms to realize cost economies by centralizing production in those locations where the mix of factor and skills is optimal
22
Q

What does REI discourage?

A
  • 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
23
Q

SACU?
ASEAN?
EAC?

A

SACU: South African Customs Union
ASEAN: Association of South East Asian Nations
EAC: East African Community

24
Q

Spatial transformations?

A

the process of allowing efficient geographic distribution of business activities within and among countries

25
Q

Degrees of Free Trade?

A

Starts with Free Trade Area(NAFTA)>Customs Union(Andean Pact)> Common Market(Mercosur)>Economic Union(EU)>Political Union:One president for all of Europe

26
Q

Benefits of regional integration:?

A
  • Larger Pool of Consumers
  • Economies of scale in production
  • Freeing the flow of capital, labor, and technology
  • Increasing cooperation, peace, and security
  • Enhanced social welfare
27
Q

Costs of regional integration:?

A

Undermining MFN(Most Favoured Nation)

  • Law Uniformity
  • Non-efficient job & unemployment distribution
  • Lose of sovereignty
  • Reduces the powers of national government
  • Increasing the problems of illegal drugs and terrorism
28
Q

Economic Geography?

A

The study of principles that govern the efficient spatial allocation of economic resources and the resulting consequences.

29
Q

Heckscher Ohlin Theory?

A

Attributes the comparative advantage of a nation to its factor endowments: land, labor, capital, and technology,

30
Q

Key assumptions of the H-O theory?

A

-Perfect competition in the marketplace

-Perfect immobility of factors of production among countries

31
Q

Factor Price Equalization Theory?

A

-When factors are allowed to move freely among trading nations, efficiency increases

-Free mobility of factors will lead to efficient reallocation of resources until price equilibrium is reached.

32
Q

Trade Policy?

A

All government actions that seek to alter the size of merchandise and or service flows from and to a country

33
Q

7 Ways the Government Intervenes?

A

1) Tariffs - Tax levied on imports that effectively raise the cost of imported products relative to domestic products

2) Subsidies - payment to domestic producers

3) Important Quotas - Restrict the quantity of some good that may be imported into a country

4) Voluntary Export Restraints - Quotason trade imposed by the exporting country, typically at the request of an importing country.

5) Local Content Requirements - demand that some specific fraction of a good be produced domestically.

6) Administrative Policies - Bureaucratic rules designed to make it difficult for imports to enter a country.

7) Antidumping Policies - Selling below cost of product or service

34
Q

Why do Governments Intervene in Markets?

A

1) Political Arguments

2) Economic Arguments

35
Q

What are the Political arguments for government Intervention?

A 
Protecting Jobs

Protecting industries deemed important for national security

Retailing to unfair foreign competition

Protecting Consumers

Furthering the goals of foreign policy

Protecting the human rights of individuals in exporting countries
36
Q

What are the economic arguments for government intervention?

A

The infant industry argument- new industries, can’t survive on their own.

Strategic trade policy - in cases where there may be

37
Q

What do trade barriers mean for managers?

A

1) Trade barriers raise the cost of exporting products to a country?
2) Voluntary export restraints may limit a firm’s ability to serve a country from locations outside that country
3) To conform to local content requirements, a firm may have to located more production activities ina given market than it would otherwise
4) Managers have an incentive to lobby for free trade, and keep protectionist pressures from causing them to have change strategies

38
Q

Trade?

A

The two way flow of exports and import of goods and services

39
Q

Outsourcing?

A

The corporate practice of acquiring or producing quality goods or services abroad at a lower cost thereby eliminating domestic production.

40
Q

Mercantilism?

A

A theory of international trade that supports the premise that a nation could only gain from trade if it had a trade surplus

41
Q

Specific tariff?

A

An import tax that assigns a fixed dollar amount per physical unit

42
Q

Ad Valorem Tariff?

A

A tax on imports levied as a constant percentage of the monetary value of one unit of imported goods

43
Q

Generalized System of Preferences?

A

An agreement where a large number of developed countries permit duty-free imports of a selected list of products that originate from specific countries.

44
Q

Preferential Duties?

A

An especially advantageous or low import tariff established by a nation for all or some goods of certain countries and not applied to the same goods of other countries

Global Business (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions