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Intl. Bus (After Midterm)

Terms in this set (17)

Political Motives for Intl. PLC (4)
1. Protect jobs
2. Preserve national security
3. Respond to unfair trade
4. Gain influence
Cultural Motives for Intl. PLC (3)
1. Nations blocking imports deemed harmful
2. Usual suspects are U.S. media & consumer goods
3. Result of increased globalization
Trade Promotion Methods (4)
1. Subsidies
2. Export financing
3. Foreign trade zones
4. Special gov't agencies
Tariff Restriction Methods (6)
1. Tariffs
2. Quotas
3. Embargoes
4. Local content requirements
5. Administration delays
6. Currency controls
Quotas
Limiting amount of imports accepted from a company overseas
Embargoes
Cutting off trade with country for political reasons
Foreign Direct Investment
Purchase of physical assets or a significant amount of ownership (stock) of a company in another country to gain a measure of management control
Reasons for FDI growth (3)
1. Increasing globalization
2. International mergers and acquisitions
3. Entrepreneurship and small firms
Regional Economic Integration
Process whereby countries in a geographic region cooperate to either reduce or eliminate barriers to the free flow of products, people or capital
Political Union
Coordinates aspects of members economic and political systems
Economic Union
Removes barriers to trade and labor and capital, set a common trade policy against nonmembers and coordinate members economic policies
Benefits of Integration (4)
1. Trade creation
2. Greater consensus
3. Political cooperation
4. Creates jobs
Drawbacks of Integration (3)
1. Trade diversion
2. Shifts in employment
3. Loss of sovereignty
How is strategy driven?
Externally
What are 2 types of Strategy (Explain)
1. Multinational Strategy: Adapting products and their marketing strategies in each national market to suit local preferences
2. Global Strategy: Offering the same products using the same marketing strategy in all national markets
What are the (6) areas of external environment
1. Polotics
2. Culture
3. Law
4. Trade
5. Trade policies
6. Globalization
What does the external environment give a firm?
Knowledge to operate in international markets
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