MGT 450 test 1
International business professor Pankaj "Megawatt" Ghemawat characterizes the world as ______ and ______.
"semiglobalized" and "multidomestic"
Product life cycle has three distinct stages what are they?
(1) new product (2) maturing product (3) standardized product
Nongovernmental organizations (NGOs) are
Any nonprofit, voluntary citizens' group that is organized on a local, national, or international level
Middle East and Africa: GCC
As a political and economic organization, the group focuses on trade, economic, and social issues
Ethnocentrism
The view that a person's own culture is central and other cultures are measured in relation to it The challenge occurs when we feel that our cultural habits, values, and perceptions are superior to other people's values
Intrapreneurship is
a form of entrepreneurship that takes place in a business that is already in existence
What is masculinity?
The value dimension referring to how a society views traits that are considered feminine or masculine
What is uncertainty avoidance?
The value dimension referring to how much uncertainty a society or culture is willing to accept
What is power distance
The value dimension referring to how openly a society or culture accepts or does not accept differences between people in hierarchies in the workplace, in politics
What is individualism
The value dimension referring to people's tendency to take care of themselves and their immediate circle of family and friends, perhaps at the expense of the overall society
What is long term orientation
The value dimension referring to whether a culture has a long-term or short-term orientation
Gross domestic product (GDP)
The value of all the goods and services produced by a country in a single year
GDP per person
The value of the GDP adjusted for purchasing power Helps managers understand how much income local residents have
Per capita GDP
The value of the GDP divided by the population of the country This is referred to as the nominal per capita GDP
Understanding what we mean by culture and what the components of culture are will help us better interpret the impact on business at both the ____and ___ levels
macro and micro
Examples of what culture consists of
manner, mindset, beliefs, customs, arts, and behaviors
What are the 10 indicators of poverty
nutrition, child mortality, years of schooling, school attendance, cooking, fuel, sanitation, water, electricity, floor, and assets
Porter's theory
states that a nation's or firm's competitiveness in an industry depends on the capacity of the industry and firm to innovate and upgrade
What does SWOT analysis stand for?
strengths, weaknesses, opportunities, threats
Geert Hofstede was an influential Dutch social psychologist who
studied the interactions between national cultures and organizational cultures
How Do Developing Countries Become Emerging Markets?
•A developing country, in order to evolve into an emerging market, must: -Seek to implement transparency in its government as well as in its political and economic institutions to help inspire business confidence in its country -Develop the local commercial infrastructure and reduce trade barriers to attract foreign businesses -Educate the population equally and create a healthy domestic workforce that's both skilled and relatively cheap First-mover advantage: The benefit that a company gains by entering into a market first or introducing a new product or service before its competitors
Middle East and Africa: AEC
•An organization of the African Union states •Provides for a staged integration of the regional economic agreements
Key Emerging (BRICS) Markets
•Asia •China •India •Europe •Russia•Africa •South Africa •Latin America •Brazil
Other trade agreements in the Americas
•CARICOM and Andean Community •CAFTA-DR
Factors That Influence a Company's Decision to Invest
•Cost •Logistics •Market •Natural resources •Know-how •Customers and competitors •Policy •Ease •Culture •Impact •Expatriation of funds •Natural resources •Exit
Your understanding of culture will affect your ability to
•Enter a local market •Develop and maintain business relationships •Negotiate successful deals •Conduct sales •Conduct marketing and advertising campaigns •Engage in manufacturing and distribution
The areas of business impacted by global perceptions of ethical, moral, and socially responsible behavior include the following
•Ethics and management •Ethics and corruption •Corporate social responsibility
The Evolution of Ethics
•Ethics evolves over time •Changing values, as influenced by global media, and changing perceptions and cultures will impact global ethics •The most challenging aspect is that global business does not have a single definition of "fair" or "ethical
Totalitarianism
A political ideology that contends that every aspect of an individual's life should be controlled and dictated by a strong, central government
Anarchism
A political ideology that contends that individuals should control political activities and public government is both unnecessary and unwanted
What Is Culture
-Culture is the beliefs, values, mind-sets, and practices of a group of people -It includes the behavior pattern and norms of that group—the rules, the assumptions, the perceptions, and the logic and reasoning that are specific to a group -It's the collective programming of our minds from birth•It's this collective programming that distinguishes one group of people from another
South America: MERCOSUR
-The group has been strategically oriented to develop the economies of its constituents, helping them become more internationally competitive so that they would not have to rely on the closed market arena -It has brought nations with long-standing rivalries together -It is committed to the consolidation of democracy and the maintenance of peace throughout the southern cone
A company asks several questions regarding a prospective country's government to assess possible risks
1.How stable is the government? 2.Is it a democracy or a dictatorship? 3.If a new party comes into power, will the rules of business change dramatically? 4.Is power concentrated in the hands of a few, or is it clearly outlined in a constitution or similar national legal document? 5.How involved is the government in the private sector? 6.Is there a well-established legal environment both to enforce policies and rules as well as to challenge them? 7.How transparent is the government's political, legal, and economic decision-making process?
What are the 3 Strategies for Handling Institutional Voids (CAGE Analysis)?
1.Adapt its business model 2.Change the institutional context 3.Stay away
What were the three more powerful forces besides the ones Friedman mentioned?
1.New software and increased public familiarity with the Internet 2.The incorporation of that knowledge into business and personal communication 3.The market influx of billions of people from Asia and the former Soviet Union who want to become more prosperous—fast
What are four reasons a country might have for borrowing money?
1.Recession 2.Investment 3.War 4.Politics
Country similarity theory
: explains intraindustry trade by stating that countries with the most similarities in factors such as incomes, consumer habits, market preferences, stage of technology, communications, degree of industrialization, and others will be more likely to engage in trade between countries and intraindustry trade will be common
Factor Proportions Theory/The Heckscher-Ohlin Theory (HOT)
:states that countries would gain comparative advantage if they produced and exported goods that required resources or factors that they had in great supply and therefore were cheaper production factors In contrast, countries would import goods that required resources that were in short supply in their country but were in higher demand
Ethics
A branch of philosophy that seeks to address questions about morality—that is, about concepts such as good and bad, right and wrong, justice, and virtue
What is Ethics?
A branch of philosophy that seeks virtue and morality, addressing questions about "right" and "wrong" behavior for people in a variety of settings; the standards of behavior that tell how human beings ought to act
Human poverty index (HPI)
A composite index that uses indicators of the most basic dimensions of deprivation: •a short life (i.e., longevity), lack of basic education (i.e., knowledge), and lack of access to public and private resources (i.e., decent standard of living)
Polychronic culture
A culture in which people can do several things at the same time
Monochronic culture
A culture in which people tend to do one task at a time
Pluralism
A political ideology that asserts that both public and private groups are important in a well-functioning political system
Democracy
A form of government that derives its power from the people
Common law
A legal system based on traditions and precedence In this system, judges interpret the law and judicial rulings can set precedent
Civil law
A legal system based upon a detailed set of laws that constitute a code and on how the law is applied to the facts
Bull market
A market in which prices rise for a prolonged period of time (horns point up)
Bear market
A market in which prices steadily drop in a downward cycle
What is the Flat-world view?
A metaphor for viewing the world as a level playing field in terms of commerce, where all competitors have an equal opportunity
What is the Multidomestic view?
A metaphor for viewing the world's markets as being more different than similar, such that the playing field differs in respective markets
Leontief Paradox
A paradox identified by Russian economist Wassily W. Leontief that states, in the real world, the reverse of the factor proportions theory exists in some countries For example, even though a country may be abundant in capital, it may still import more capital-intensive goods During the 1950's, the US imported more Capital Intensive commodities and exported more Labor Intensive commodities (contradicted HOT)
What is a Business?
A person or organization engaged in commerce with the aim of achieving a profit
Exporter
A person or organization that sells products and services in foreign countries that are sourced from the home country
Importer
A person or organization that sells products and services that are sourced from other countries
An Intrapreneur is
A person within an established business who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation
General Agreement on Tariffs and Trade (GATT)
A series of rules governing trade that were first created in 1947 by twenty-three countries
Human development index (HDI)
A summary composite index that measures a country's average achievements in three basic aspects of human development: •health, knowledge, and a decent standard of living
Stakeholder analysis
A technique used to identify and assess the importance of key people, groups of people, or institutions that may significantly influence the success of an activity, project, or business
What are location advantages?
Advantages due to choice of foreign markets and can include better access to raw materials, less costly labor, key suppliers, key customers, energy, and natural resources
What is international business?
All cross-border exchanges of goods, services, or resources between two or more nations
Developed Economies
Also known as advanced economies, these countries are characterized as postindustrial with high per capita incomes, competitive industries, transparent legal and regulatory environments, and well-developed commercial infrastructures
Who was Edward T. Hall
An Anthropologist who applied his field to the understanding of cultures and intercultural communications Hall is best noted for 3 principal categories of how cultures differ: context, space, and time
Planned economy
An economic system in which the government or state directs and controls the economy, including the means and decision making for production
Capitalism
An economic system in which the means of production are owned and controlled privately
Purchasing power parity (PPP)
An economic theory that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency
Emerging market
An evolving definition that is currently viewed as a country that can be defined as a society transitioning from a centrally managed economy to a free market-oriented-economy, with increasing economic freedom •Gradual integration within the global marketplace •An expanding middle class •Improving standards of living, social stability, and tolerance •An increase in cooperation with multilateral institutions
What is a Stakeholder?
An individual or organization whose interests may be affected as the result of what another individual or organization does
Four Types of Political Systems
Anarchism, Totalitarianism, Pluralism, and Democracy
GDP=
C+G+I+NX Consumption Government spending Investment Net exports= Exports and Imports NX=X-M NX=Exports-Imports
What Are the Different Legal Systems?
Civil law, Common law, and Religious law
According to Thomas Friedman:•Globalization 1.0 is
Columbus's discovery of the New World and ran from 1492 to about 1800 (Country)
Developing world
Countries that rank lower on various classifications including GDP and the HDI These countries tend to have economies focused on one or more key industries and tend to have poor commercial infrastructure The local business environment tends not to be transparent, and there is usually a weak competitive industry Developing countries sometimes find that their economies improve and gradually they become emerging markets Focusing only on today's political, economic, and social conditions distorts the picture of what these countries have been and what they might become again Developing economies typically have poor, inadequate, or unequal access to infrastructure
How Culture Impacts Business Practices
Culture impacts:•The pace of business •Business protocol—how to physically and verbally meet and interact •Decision making and negotiating •Managing employees and projects •Propensity for risk taking •Marketing, sales, and distribution -To conduct business with people from other cultures, you must put aside preconceived notions and strive to learn about the culture of your counterpart
How Governments Encourage FDI
Financial incentives Infrastructure Administrative processes & Regulatory environment Invest in education Political, economic, & legal stability
Global strategic rivalry theory
Focused on MNCs and their efforts to gain a competitive advantage against other global firms in their industry
Why do governments intervene in trade?
For a combination of Political, Economic, social, and cultural reasons
How the World Got Flat according to Friedman
Friedman identifies ten major events that helped reshape the modern world and make it flat: 1. 11/9/89: When the walls came down and the windows went up 2. 8/9/95: When Netscape went public 3. Work-flow software: Let's do lunch; Have your application talk to my application 4. Open-sourcing: Self-organizing, collaborative communities 5. Outsourcing: China, India 6. Offshoring: Running with gazelles, eating with lions 7.Supply-chaining: Eating sushi in Arkansas 8. Insourcing: What the guys in funny brown shorts are really doing 9.In-forming: Google, Yahoo!, MSN Web Search 10.The Steroids: Digital, mobile, personal, and virtual
According to Thomas Friedman:•Globalization 2.0 is
From about 1800 to 2000, was disrupted by the Great Depression and both World Wars and was largely shaped by the emerging power of huge, multinational corporations (company)
Most-favored-nation clause (MFN)
GATT provision that required member countries to automatically extend to all member countries the same benefits, usually tariff reductions, they agreed on with any other countries
In coming to terms with cultural differences, we tend to employ generalizations. Generalizations can what?
Generalizations can save us from sinking into what may be abstruse, esoteric aspects of a culture
United Nations and Impact on Trade
Global businesses find that operating in stable environments leads to the best business operations for the following reasons: •Staffing •Operations •Regulations •Currency convertibility and free-flowing ca
What is Culture awareness
Having an understanding of another culture's values and perspective•Understanding another culture's mind-set and how its history, economy, and society have impacted what people think
Three dimensions of poverty
Health, education, and living standard
High- and low-context communication
How a message is communicated •In high-context cultures, the physical context of the message carries a great deal of importance •In low-context cultures, people verbally say exactly what they mean
Human Development Index (HDI) what are the two parts?
Human development index (HDI) Human poverty index (HPI)
Parts of a Business?
Importer,Exporter, and Foreign direct investment
Enforcement of Ethical Guidelines and Standards
In the interest of expediency, many governments may not strictly enforce the rules governing corporate ethics *Example: The practice of gift giving Governments do not enforce laws until it's politically expedient to do so *Example: Child labor
What Kinds of Culture Are There?
Nationalities Subcultures Organizations
Who is Interested in International Business?
Individuals or organizations will have an interest in international business if it affects them in some way—positively or negatively
Two types of Foreign direct investment (FDI)
Inward FDI: An investment into a country by a company from another country. Outward FDI: An investment made by a domestic company into companies in other countries
Sharīʿah
Islamic religious law that addresses all aspect of daily life; in terms of business and finance, the law prohibits charging interest on money and other common investment activities, including hedging and short selling
North America: NAFTA
It came into being during a period when free trade and trading blocs were popular and positively perceived Its goal has been to encourage trade between Canada, the United States, and Mexico
The Globalization Debate
It is a stark difference of opinion on how the internationalization of businesses is affecting countries' cultural, consumer, and national identities—and whether these changes are desirable The shift toward a more interdependent and integrated global economy is fueled largely by •Declining trade and investment barriers •New technologies, such as the Internet• The globalization debate surrounds whether and how fast markets are actually merging together
What does a SWOT analysis do?
It is a strategic management tool that helps an organization:Take stock of its internal characteristics—strengths and weaknesses. As well as assess its external environmental conditions—opportunities and threats—that favor or threaten the organization's strategy
Religious law
Known as theocratic law; this legal system is based on religious guidelines•
What are the entities involved in international business?
Large multinational firms with thousands of employees doing business in many countries around the world A small one-person company acting as an importer or exporter
Porter's theory identifies four key determinants of national competitiveness what are they?
Local market resources and capabilities Local market demand conditions Local suppliers and complementary industries Local firm characteristics
According to Thomas Friedman:•Globalization 3.0 is
Major software advances have allowed an unprecedented number of people worldwide to work together with unlimited potential (person)
Free trade area (eg NAFTA)
Member countries remove all barriers to trade between themselves but are free to independently determine trade policies with non-member nations.
Asia: APEC
Only regional trading group that uses the term member economies, rather than countries, in deference to China
Key Methods Used to Describe Cultures
Power Distance, Individualism, Masculinity, Uncertainty Avoidance (UA), and Long-Term Orientation
Asia: ASEAN
Primary focus is on economic, social, cultural, and technical cooperation as well as promoting regional peace and stability
What are the barriers for entry pertaining to the Global strategic rivalry theory?
R&D, IPR, Economies of Scale, unique business processes, control of resources
Basic tool of strategy is the ______assessment.
SWOT
Value
Something that we prefer over something else—whether it's a behavior or a tangible item Values are acquired early in life and are usually nonrational—although we may believe that ours are actually quite rational Our values are the key building blocks of our cultural orientation Each of us has been raised with a considerably different set of values from those of our colleagues and counterparts around the world
two types of Tariffs
Specific tariffs: Taxes or tariffs that are levied as a fixed charge, regardless of the value of the product or service Ad valorem tariffs: Tariffs that are calculated as a percentage of the value of the product or service
Country Similarity Theory
Swedish economist Steffan Linder developed the country similarity theory in 1961, as he tried to explain the concept of intraindustry trade. Linder's theory proposed that consumers in countries that are in the same or similar stage of development would have similar preferences
How do governments intervene in trade?
Tariffs Subsidies Import quotas and VER (voluntary export restraints) Currency controls Local content requirements Antidumping rules Export financing Free trade zone Administrative policies
US Economic Outlook for 2019 and Beyond
The U.S. economic outlook is healthy according to the key economic indicators. The most critical indicator is the gross domestic product, which measures the nation's production output. The GDP growth rate is expected to remain between the 2% to 3% ideal range. Unemployment is forecast to continue at the natural rate. There isn't too much inflation or deflation. That's a Goldilocks economy. •U.S. GDP growth will slow to 2.1% in 2019 from 3% in 2018. It will be 2% in 2020 and 1.8% in 2021. •The unemployment rate will average 3.6% in 2019. It will increase slightly to 3.7% in 2020 and 3.8% in 2021. •Inflation will average 1.5% in 2019. It will rise to 1.9% in 2020 and 2.0% in 2021. •The Fed raised the current fed funds rate to 2.5% on December 19, 2018. It doesn't expect to increase this interest rate for the foreseeable future.
The United States
The United States is the fourth-largest country in the world—after Russia, China, and Canada The United States is the world's largest single-country economy and accounts for nearly 25 percent of the global gross domestic product (GDP) The strength of the U.S. economy is due in large part to its diversity The United States has a service-based economy. In 2009, industry accounted for 21.9 percent of the GDP
Absolute Advantage
The ability of a country to produce a good more efficiently than another nation
Foreign direct investment (FDI)
The acquisition of foreign assets with the intent to control and manage them
Describe CAGE Framework
The analytical framework used to understand country and regional differences along the distance dimensions of culture, administration, geography, and economics
What is Strategic management?
The body of knowledge that answers questions about the development and implementation of good strategies; mainly concerned with the determinants of firm performance
Government is
The body of people that sets and administers public policy and exercises executive, political, and sovereign power through customs, institutions, and laws within a state, country, or other political unit
Business ethics
The branch of business that examines various kinds of activities and asks, "Is this business conduct ethically right or wrong?"
Entrepreneurship is
The recognition of opportunities (needs, wants, problems, and challenges) and the use or creation of resources to implement innovative ideas for new, thoughtfully planned ventures
Strategy is
The central, integrated, and externally oriented concept of how an organization will achieve its performance objectives
Corporate Social Responsibility
The corporate conscience, citizenship, social performance, or sustainable responsible business, and is a form of corporate self-regulation integrated into a business model •Corporate social responsibility encompasses what companies do with their profits and how they make them •It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, their relationships in all key spheres of influence: The workplace, the marketplace, the supply chain, the community, the public policy realm
Portfolio investment
The investment in a company's stocks, bonds, or assets, but not for the purpose of controlling or directing the firm's operations or management
Foreign direct investment
The investment of foreign assets into domestic structures, equipment, and organizations
What is globalization in terms of markets?
Trade barriers are falling and buyer preferences are changing
Protectionism
The practice of imposing restrictions on imports and protecting domestic industry
What is Cross-cultural understanding
The requirement that we reorient our mind-set and, most importantly, our expectations, in order to accurately interpret the gestures, attitudes, and statements of the people we encounter from other cultures
What is globalization?
The shift toward a more interdependent and integrated global economy
Comparative Advantage
The situation in which a country cannot produce a product more efficiently than another country; however, it does produce that product better and more efficiently than it does another good
Value dimensions are
The specific values included in Hofstede's research. Values, in this case, are broad preferences for one state of affairs over others, and they are mostly unconscious
Space
The study of physical space and people; called proxemics, one of Hall's principal categories on describing how cultures diffe
What is a Political system
The system of politics and government in a country; it governs a complete set of rules, regulations, institutions, and attitudes
Common market (eg COMESA)
Trade barriers are removed, as are any restrictions on the movement of labor and capital between member countries.
Cultures and values are not static entities they what?
They're constantly evolving—merging, interacting, drawing apart, and reforming
Economic union (eg EU)
This type is created when countries enter into an economic agreement to remove barriers to trade and adopt common economic policies.
Customs union(eg Gulf Cooperation Council (GCC))
This type provides for economic cooperation as in a free trade zone.
What Is International Trade?
Trade is the concept of exchanging goods and services between two people or entities. International trade is the concept of exchanging goods and services between people or entities in two different countries
The ten factors Friedman mentioned had powerful roles in making the world smaller, but each worked in isolation until the convergence of three more powerful forces? True or False
True
Two of the biggest challenges to identifying ethical standards?
What the standards should be based on? How we apply those standards in specific situations?
Trade surplus
When the value of exports is greater than the value of imports
Trade deficit
When the value of imports is greater than the value of export
What is globalization in terms of production?
Where a company can source goods and services easily from other countries
When it comes to international business can exchanges go beyond the exchange of money for physical goods to include international transfers of other resources, such as people, intellectual property, and contractual assets or liabilities?
Yes
Regional Economic Integration
has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors Four main types of regional economic integration: •Free trade area •Customs union •Common market •Economic union
An Entrepreneur
is a person who engages in entrepreneurship
The study of physical space and people is called what?
proxemics,
Mercantilism
trade theory that states that a country's wealth is determined by its holdings of gold and silver The objective of each country was to have a trade surplus and to avoid a trade deficit
The United Nations (UN)
was formed in 1945 at the end of World War II to replace the League of Nations, which had been formed in 1919 Original goals To maintain international peace and security To develop friendly relations between nations To foster international cooperation in solving economic, social, humanitarian, and cultural issues A secretary-general leads the UN and serves for a five-year term The UN consists of six main bodies: •General Assembly •Security Council •Economic and Social Council (ECOSOC) •Secretariat •International Court of Justice •UN trusteeship Council
Trade Agreements Impact Business
•Global businesses have benefited from the regional trade agreements by having more consistent criteria for investment and trade as well as reduced barriers to entry •The challenges for businesses include finding themselves outside of a new trading bloc or having the "rules" for their industry change as a result of new trade agreements
Kinds of FDI
•Greenfield FDI: An FDI strategy in which a company builds new facilities from scratch •Brownfield FDI: An FDI strategy in which a company or government entity purchases or leases existing production facilities to launch a new production activity
EU governance
•Has its own governing and decision-making institutions •European Council •European Commission •European Parliament •Council of the European Union •Court of Justice
Forms of FDI
•Horizontal FDI: When a company is trying to open up a new market that is similar to its domestic markets •Vertical FDI: When a company invests internationally to provide input into its core operations usually in its home country
Japan
•Japan's post-World War II success has been the result of a well-crafted economic policy closely administered by the government in alliance with large businesses •Highly skilled workforce •Japan has very few mineral and energy resources and relies heavily on imports to bring in almost all of its oil, iron ore, lead, wool, and cotton. It is the world's largest importer of numerous raw materials including coal, copper, zinc, and lumber •As with other developed nations, services lead the economy, representing 76.5 % of the national GDP, while industry accounts for 21.9 % of the country's output
Europe EU
•Most integrated form of economic cooperation •The Treaty of Maastricht in 1993 - The real economic union was created
How Governments Discourage or Restrict FDI
•Ownership restrictions -Host governments can specify ownership restrictions if they want to keep the control of local markets or industries in their citizens' hands •Tax rates and sanctions -A company's home government imposes restrictions in an effort to persuade companies to invest in the domestic market rather than a foreign one
What are two reasons for the creation of the European Union (EU)?
•The European Union was formed after WWII with six nations. •Two reasons for its creation are: 1.Greater cooperation among European governments 2.More trade agreements in order to facilitate
Developing Economies and Regions
•The Middle East •Africa •Nigeria
When evaluating a country, a manager is assessing?
•The country's income and the purchasing power of its people •The legal, regulatory, and commercial infrastructure •The sophistication of the business environment
World Trade Organization (WTO)
•The organization that succeeded GATT and came into effect on January 1, 1995 •It is the only institutional body charged with facilitating free and fair trade between member nations •Its primary purpose is to serve as a negotiating forum for member nations to dispute, discuss, and debate trade-related matters •The current round of the WTO is called the Doha Round
Why and How Governments Encourage FDI
•To create jobs •Expand local technical knowledge •Increase their overall economic standards
Pros of Creating Regional Agreements
•Trade creation •Employment opportunities •Consensus and cooperation
Cons Involved in Creating Regional Agreements
•Trade diversion -Trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union. •Employment shifts and reductions •Loss of national sovereignty -The exclusive right of a government, or of its people (as in a democracy), or an individual (as in a monarchy) to exercise supreme authority over itself. In the current international system, the nation-state is the highest level of government.
UN as a Business Partner
•UN works closely with the private sector •Global businesses sell to the UN just as they do to their own governments and public-sector organizations •Each arm of the UN has a procurement office •The UN Procurement Division does business with vendors from all over the world •Actively working to increase its sources of supply from developing countries and countries with economies in transition
Germany•Germany (European Union)
•has the 5th largest economy in the world Leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force •Largest and strongest economy in Europe •Services drive the economy, 72.3% (in 2009) of the total GDP •Industry accounts for 26.8 % economy (agriculture represents 0.9%)
