Globalization and Internationalization Flashcards
What is International Management
- process of applying management concepts and techniques in a multinational environment and adapting management to different economic, political and cultural contexts
What is globalization
- global competition characterised by networks of international linkages that bind countries …
- vision of creating one world unit (a single market entity)
What is internationalization
- process of a business crossing national and cultural borders
What is offshoring
- when some company activities take place at offshore locations instead in their countries of origin
What is outsourcing
- contracting out to external organisations activities previously performed by the firm
5 key global trends
1- emerging markets
2- increase of productivity and consumption in developed countries
3- increasing global interconnectivity
4- increasing gap between supply and demand of natural resources
5- challenge to develop policies
Changing global demographics due to
- people ar no longer living in both developed and developing countries
- the biggest impact is seen in the developed nations
- fertility rate was cut in half
when does a market economy exist
- when private enterprises reserve the right to own property and monitor production/distribution
- state simply supports competition and practices
What is a command economy
- similar to monopoly
- government has explicit control over the price and supply of a good/service
What is a mixed economy
- mixed of market and command
- some sectors reflect more the private ownership other reflect the law of demand
regional economic integration (5)
-politcal union
-economic union
- common market
-customs union
- free trade area
forms of integration (free trade area)
- eliminate trade barriers
- each members establish its own trade policies
- rules of origin
forms of integration: customs union
-eliminate trade barriers
-adopt common external trade policies
- minimize trade deflection problem
Forms of integration common market
- eliminate trade barriers
-adopt common external trade policy
-eliminates barriers that affect movement of factors of production
Forms of integration Economic union
- abolish restrictions on the mobility of factors of production
- members must coordinate their economic policies
