MGMT 309 - Ch. 5-8
Strategic alliance
2 or more firm jointly cooperate for mutual gain
Direct investment
Firm headquartered in one country builds/purchases operating facilities/subsidiaries in a foreign country
EU
First and most important international market system
Trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets.
General Agreement on Tariffs and Trade
A major stimulus to international trade after it was first ratified in 1948 by 23 countries
General Agreement on Tariffs and Trade (GATT)
Serves as an environmental challenge faced by managers in a global context
Economic environment
While performing the function of organizing in a global economy, managers should
Deal with human resources
Country that remains largely underdeveloped but has a high-potential economy
China
Power tolerance
Individuals assess authority in view of its perceived rightness or their own personal interests
True of the European Union (EU)
It gained potential after the adoption of the Euro
The EU is a market system
Its member countries engage in high levels of trade w/ one another to keep trade barriers to a minimum
basic organizational function that international management has implications for
Leading
An economy based on private ownership of business and allows factors such as supply and demand to determine business strategy
Market economy
incentives for international trade a less-developed country is likely to offer
Market protection through limitation on other importers
Gold's Gym, a U.S. fitness chain, has successfully opened facilities in a few foreign locations. Gold's Gym is therefore most likely a...
Medium-size organization
In contrast to multinational corporations (MNCs), medium-sized organizations doing business abroad are:
More selective about the markets they enter
True of culture in a global economy
Motivational processes vary across cultures
________ take a global perspective by actively seeking new expansion opportunities wherever feasible
Multinational corporations
Challenge encountered when working with oil-producing nations
Political Instability
Characteristic of high-potential/high-growth economies that makes them of such interest to international businesses
Population size
Primary mission of the World Trade Organization
Promote trade among nations
Limit on the number or value of goods that can be traded
Quota
A basic goal of the World Trade Organization (WTO)
Reduce trade barriers through multilateral negotiations
Tax collected on goods shipped across national boundaries
Tariff
Critical issue in decision making in a global economy
The role of goals in an organization
True of Multinational Corporations (MNCs)
They transfer capital and information from one market to another
Joint venture
special type of strategic alliance where partners share ownership in a new enterprise
Power respect
authority is inherent in one's position within heirarchy
Licensing
company allows another to use its trademark, brand name, technology, patent, copyright, or other assets in exchange for royalty
usually first type of international business a firm gets involved in
importing/exporting
Direct investment is advantageous because managerial control:
is more complete
Maquiladoras
light-assembly plants built in north mexico, close to the US border
Quota
limit on number of value of goods that can be traded
Economic community
set of countries that agree to markedly reduce/eliminate trade barriers among member nations Ex: EU, formalized market system, NAFTA, Latin American Integration Association, Caribbean Common Market
Export restraint agreement
sets voluntary limits on goods exported/imported between governments