LESSON 5 Flashcards
THE GLOBAL ENVIRONMENT
A business based in one country
domestic business
a business based in one country but acquires some profit from other countries
international business
a business that has worldwide marketplace
multinational
a business that does not commit to one country, transcends national boundaries.
global business
it is based on the private ownership and allows market factors determine the business strategy
market economy
a cluster of countries that engage on trade to other countries
market system
THE PROCESS OF GLOBALIZATION
importing
exporting
licensing
Cooperation of 2 or more firms
strategic alliance
A type of strategic alliance
joint venture
When a firm headquartered in a foreign country
direct investment
3 ELEMENTS OF GLOBAL ECONOMY
market economy/market system
high potential/high growth economy
Other exporting, property ownership countries
environmental challenges
Economic system
Natural resource
Infrastructure
controls of international trades
tariffs
quota
export restraint agreement
Agreement among the U.S., Canada, and Mexico.
North American Free Trade Agreement
(NAFTA)
First and most important international market system.
European Union (EU)
