U3 International Agreements, Organization, and Policies

Question 1

Globalization

Answer 1

the growth and spread of interactive international economies/businesses around the world

Question 2

MNC (transnational Corp.)

Answer 2

a business enterprise that conducts business in several countries

Question 3

multinational corporation

Answer 3

• operates on a borderless basis while still observing national regulations and policies
• dominant in many areas: oil, gas, hydro/nuclear plants, minerals, wood, crops, processed foods, natural resources
• accounts for 70% of word trade
• power is in the northern hemisphere
• 40k MNCs in the world
• ontario has 1100

Question 4

types of multinational corporation

Answer 4

1. ethnocentric MNC
2. Polycentric MNC
3. Geocentric MNC

Question 5

ethnocentric MNC

Answer 5

• operates internationally, in much the same way as home
• tight control over its foreign operations from head office

Question 6

polycentric MNC

Answer 6

understand market differences from country to country and give its foreign operation greater autonomy (interdependence)

Question 7

geocentric MNC

Answer 7

takes a multinational approach and seeks total integration of its global operations

Question 8

global organizational structure

Answer 8

companies that export internationally need to keep broad international structure

Question 9

5 ways to organize people and resources for international business

Answer 9

1. separate international division
2. functional division
3. product division
4. geographic division
5. matrix organization