MGT 380 ch4-6 notes for quiz 2
MGT 380 ch4-6 notes for quiz 2 MGT 380
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This 15 page Bundle was uploaded by Lindsey Tillett on Tuesday February 16, 2016. The Bundle belongs to MGT 380 at Arizona State University taught by James Moore in Spring 2016. Since its upload, it has received 435 views. For similar materials see Management & Strategy for Nonmajors in Business, management at Arizona State University.
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Date Created: 02/16/16
Globalization- the trend of the world economy toward becoming a more interdependent system Global village- shrinking of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate to one another E-commerce- electronic commerce, the buying and selling of products and services through computer networks Global economy- increasing tendency of the economies of the world to interact with one another as one market instead of many national markets Multinational corporation/enterprise- business firm with operations in several countries Multinational organization- nonprofit organization with operations in several countries Ethnocentric managers- “superior” beliefs Parochialism- narrow view in which people see things solely through their own perspective Polycentric manager- take the view hat native managers in the foreign office best understand native personnel and practices, and so the home office should leave them alone Geocentric manager- accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective Maquiladoras- manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens Countertrading- bartering goods for goods Free trade- movement of goods and services among nations without political or economic obstruction Trade protectionism- government regulations to limit the import of goods and services Tariff- trade barrier in form of customs duty or tax levied mainly on imports Import quota- trade barrier in form of a limit on the numbers of a product that can be imported Licensing- typically manufacturing companies Franchising- form of licensing which one company allows a foreign company to pay a fee and share of the profit for using the company’s brand name and materials and services Dumping- practice of a foreign company’s exporting products abroad at a lower price than the price in the home market or even below the costs of production in order to drive down the price of the domestic product Embargo- complete ban on the import or export of certain products WTO- world trade organization, monitor and enforce trade agreements World bank- provide low-interest loans to developing nations for improving transportation, education, health and telecommunications IMF, international monetary fund- designed to assist in smoothing the flow of money between nations Trading bloc- economic community- group of nations within a geographical region that have agreed to remove trade barriers with one another NAFTA, North American Free Trade Agreement- trading bloc consisting of the US, Canada, and Mexico European Union, EU- consists of 28 trading partners in Europe APEC, Asia-Pacific Economic Cooperation- 21 Pacific Rim countries whose purpose is to improve economic and political ties ASEAN, Association of SE Asian Nations- trading bloc consisting of 10 countries in Asia Mercosur- largest trading bloc in Latin America and has 5 core members and 7 associate members CAFTA-DR- Central America Free Trade Agreement- reduce tariffs and other barriers to free trade Most favored nation- trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties Exchange rate- rate at which the currency of one area or country can be exchanged for the currency of another’s Monochromic time- preference for doing one thing at a time Polychromic time- doing more than 1 thing at a time Expropriation- governments seizure of a domestic or foreign company’s assets Foreign Corrupt Practices Act- illegal for employees of US companies to make questionable or dubious contributions to political decision makers in foreign nations Expatriates- people living or working in foreign country 5 reasons why companies expand internationally 1. Availability of supplies 2. New markets 3. Lower labor costs 4. Access to finance capital 5. Avoidance of tariffs and import quotas CH 5
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