INTB Mid Term Exam

Helpfulness: 0
Set Details Share
created 4 years ago by Adriana_Guillen
43 views
Chapter 1, 2, 9
updated 4 years ago by Adriana_Guillen
show moreless
Page to share:
Embed this setcancel
COPY
code changes based on your size selection
Size:
X
Show:
1

International Business

A business whose activities are carried out across national borders

2

foreign business

the operations of a company outside its home or domestic market

3

multidomestic company (MDC)

an organization with multi-country affiliates each of which formulates its own business strategy based on perceived market differences

4

global company (GC)

an organization that attempts to standardize and integrate operations worldwide in all functional areas

5

international company (IC)

either a global or multidomestic company

6

environment

all the forces surrounding and influencing the life and development of the firm

7

uncontrollable forces

external forces over which management has no direct control, although it can exert an influence

8

controllable forces

internal forces that management administers to adapt to changes in the uncontrollable forces

9

domestic environment

all uncontrollable forces originating in the home country that surround and influence the firm

10

international environment

interaction between domestic and foreign environmental forces or between sets of foreign environment forces

11

self reference criterion

unconscious reference to ones own cultural values when judging behaviors of others in a new and different environment

12

foreign direct investment (FDI)

direct investments in equipment, structures, and organizations in a foreign country at a level that is sufficient to obtain significant management control, does not include mere foreign investment in stock markets

13

exporting

the transportation of any domestic good or service to a destination outside a country or region

14

importing

transportation of any good or service into a country or religion from a foreign origination point

15

economic globalization

tendency toward an international integration of good, technology, information, labor, and capital, or the process, of making this integration happen

16

mercantilism

an economic philosophy based on the belief that

1. a nations wealth depends on accumulated treasure, usually gold, and

2. to increase wealth, government policies should promote exports and discourage imports

17

absolute advantage

theory that a nation has absolute advantage when it can produce a larger amount of good or service for the same amount of inputs as can another country or when it can produce the same amount of a good or service using fewer inputs than could another country

18

comparative advantage

theory that a nation having absolute disadvantages in the production of two goods with respect to another nation has a comparative or relative advantage in the production of the good in which its absolute disadvantage is less

19

exchange rate

the price of one currency stated in terms of another currency

20

currency devaluation

the lowering of a currency's price in terms of other currencies

21

national competitiveness

a nations relative ability to design, produce, distribute, or service products within an international trading context while earning increasing returns on its resources

22

portfolio investment

the purchase of stocks and bonds to obtain a return on the funds invested

23

direct investment

the purchase of sufficient stock in a firm to obtain significant management control

24

monopolistic advantage

theory that foreign direct investment is made by firms in oligopolistic industries possessing technical and other advantages over indigenous firms

25

internalization theory

the concept that to obtain a higher return on its investment, a firm will transfer its superior knowledge to a foreign subsidiary rather than sell it in the open market

26

eclectic theory of international production

theory that for a firm to invest overseas, it must have three kinds of advantages: ownership, specific, internalization, and location specific

27

labor quality

skills, education, and attitudes of available employees

28

labor quantity

number of available employees with the skills required to meet an employers business needs

29

labor mobility

movement of people from country to country or area to area to get jobs

30

child labor

the labor of children 14 years of age and below who are forced to work and usually receive little or no education

31

brain drain

the loss by a country of its most intelligent and best educated people

32

reverse brain drain

the return home of highly skilled immigrants who have made a contribution in their adopted country

33

guest workers

people who go to a foreign country legally to perform certain types of jobs

34

labor market

pool of availability potential employees with the necessary skills within commuting distance from an employer

35

labor unions

organizations of workers

36

collective bargaining

process in which a union represents the interests of workers bargaining in negotiations with management