Management Belmont University Loes CH 5

Multinational corporation

A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region

Franchisingb b

A form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations.

Cartel

A group of firms or nations that agree to act as a monopoly and not compete with each other.

Global business (Globalization)

A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

Licensing

A trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty,

Culture

According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called

Dumping

By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit

Countertrade agreement

China's arrangement with the Congo to barter infrastructure in exchange for metals is an example of a

North American Free Trade Agreement (NAFTA)

Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries

International Monetary Fund

If Peru wants to purchase machine parts from a German company but lacks German marks, it will probably go to which of the following institutions to borrow the marks?

Quota

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of garments being imported from China and Vietnam by imposing a

Licensing

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

International Monetary Fund (IMF)

The basic mission of this group it to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world

Direct Investment

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

Gross domestic product (GDP)

The market value of a nation's total output of goods .

Direct Investment

The purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities

Outsourcing

The transfer of manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive

sociocultural differences

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

Quota

What name is given to the maximum number of units of a particular product that may be imported into a country?

Exporting

What name is given to the sale of goods and services to foreign markets?

Is exporting the lenses

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company

a countertrade agreement

When a nation pays for imports with its own goods, it is using...

Impose a protective import tariff.

You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in Transoceania, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are going to lobby Congress and the president to

Organization of Economic Cooperation and Development (OECD)

an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world.

Strategic Alliance

what term refers to a partnership formed to create competitive advantage on a worldwide basis?