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GEB 3375 intro to international business ucf
Terms in this set (20)
the shift toward a more integrated and interdependent world economy
The world is moving away from _____ national economies and toward _____ integrated global economic system
-Globalization of Markets
to the merging of historically distinct and separate national markets into one huge global marketplace.
After Globalization of Markets, significant differences remain among national markets causing companies to:
customize to meet conditions in particular markets. (opening a McDonalds in China)
Most Global Markets are markets for what?
Industrial Goods/Materials (not consumer products)
-Globalization of Production
the sourcing of goods and services from other locations to take advantage of national differences in the cost and quality of factors of production
-Factors of Production
Why do companies want to use Globalization of Production?
-to lower cost
Early outsourcing efforts were primarily confined to what?
Companies like Vizio are doing what?
Outsourcing service activities to other nations.
help manage, regulate, and police the global marketplace.
-promote multinational treaties to govern the global business system.
Examples of Global Institutions
-the General Agreement on Tariffs and Trade (GATT)
-the World Trade Organization (WTO)
-the International Monetary Fund (IMF)
-the World Bank
the United Nations (UN)
World Trade Organization (WTO) (like GATT)
-Policies world trade system
-makes sure rules are obeyed in treaties
-promotes lower barriers to trade and investment
-159 members since 2013
International Monetary Fund (1944)
-maintain order in international monetary system
-lender of last resort for countries in crisis
World Bank (1944)
-promotes economic development via low interest loans for infrastructure projects
-Maintains international peace and security
-develops friendly relations among nations
-helps in international problems
-promotes respect for human rights
-center for harmonizing the actions of nations
Forum through which major nations tried to launch a coordinated policy response to the 2008-2009 global financial crisis
Foreign direct investment
occurs when a firm invests resources in business activities outside its home country.
What is driving globalization?
What does globalization mean for firms?
-lower barriers so