UNIT 1 ( LESSONS 1 & 2) Flashcards
________ is the
value of all goods and services produced by a domestic economy over a one-year period.
GDP or Gross Domestic Product
A distributed digital database that stores information and creates a secure record of transactions.
Blockchain
__________ is any commercial transaction that crosses the borders of two or more nations.
International Business
These are the goods and services purchased abroad and brought into a country
Imports
These are the goods and services sold abroad and sent out of a country.
Exports
The study of international business involves learning about _____________________,
_______________, ____________, __________________, and a _________________. People are at the center of each of these topics and are what makes international business a dynamic and thrilling journey of discovery
government policies, company activities, the work of managers, the work and social lives of ordinary people, and a host of social issues.
A ___________________ is a business that has direct investments (in the form
of marketing or manufacturing subsidiaries) abroad in multiple countries. A company that invests directly in operations abroad engages in foreign direct investment—the purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.
It generate significant jobs, investment, and revenue for the regions and nations they enter.
Multinational Corporation (MNC)
A _______________ firm—a company with a global perspective that engages in international business from inception and quickly
achieves a competitive advantage.
Usually they are small, technology oriented companies that operate in several international markets
They don’t follow the traditional route that most MNC follows, which is building a strong home based first.
The adapt differentiation strategies by developing the science that are distinct and hard to follow.
Examples are: AirBnB, tiktok, spotify, and twitch
“Born-Global Firm”
______________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. Cultural, political, economic, and legal events in one country increasingly affect the lives of people in other countries. _________ is characterized by denationalization (national boundaries becoming less relevant
Globalization
_______________refers to the convergence in buyer preferences in markets around the world. This trend is occurring in many product categories, including consumer goods, industrial products, and business services.
Globalization of markets
____________________refers to the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service. This includes the sourcing of key production inputs (such as raw materials or products for assembly) as well as the international outsourcing of service
Globalization of production
A treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade.
Tariffs are essentially taxes levied on traded goods, and nontariff barriers are limits on the quantity of an imported product.
Gives protection to copyrights (including computer programs, databases, sound recordings, and films), trademarks and service marks, and patents (including trade secrets and know-how).
It lacked the power to enforce world trade rules.
General Agreement on Tariffs and Trade (GATT)
An international organization that enforces the rules of international trade.
The three main goals:
– support the free flow of trade,
– help negotiate the further opening of markets,
– settle trade disputes among its members.
The World Trade Organization (WTO)
Smaller trade pacts are similar to those of the WTO but are regional in nature.
Ex. APEC, ASEAN and United States-Meico-Canada Agreement (USMCA)
Regional Trade Agreements
An agency created to provide financing for national economic development efforts.
The initial purpose of the ________ was to finance European reconstruction following the Second World War. The bank later shifted its focus to the general financial needs of developing countries, and today it finances many economic development projects in Africa, South America, and Southeast Asia.
The World Bank
