Term
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Definition
procurement of gods and services from around the globe
o Commonly used to lower cost production
o Takes advantage of national differences in quality and price for labor, land, energy, and capital
o Grown to include knowledge economies such as medicine, financial advice, tech support, consulting, etc
o Financial services are by far the largest private-sector market for offshoring |
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Term
| WTO (and its major function) |
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Definition
World Trade Organization
Acts as a forum for trade negotiations
Settles trade disputes
Ensure trade flows as smoothly as possible |
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Term
| Components of a country market assessment |
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Definition
Economic analysis using metrics
Sociocultural analysis
Infrastructure and technology
Government actions |
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Term
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Definition
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Term
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Definition
Gross National Income
consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy). In other words, U.S. firms that invest or maintain operations abroad count their income from those operations in the GNI but not the GDP |
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Term
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Definition
Human Development Index
Life expectancy, educational attainment, quality of life |
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Term
| Four key elements of infrastructure and technology capabilities |
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Definition
Transportation
Channels
Communication
Commerce |
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Term
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Definition
| Selling a good in a foreign market at a price that is lower than its domestic price or below its cost |
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Term
| Five cultural dimensions (Hofstede) |
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Definition
Small vs. large power distance
Individualism vs. collectivism
Masculinity vs. feminity
Weak vs. strong (uncertainty avoidance)
o Extent to which the society relies on orderliness, consistency, structure, and formalized procedures
Long vs. short term time orientation |
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Term
| Global Entry strategies (least risky to most risky) |
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Definition
Exporting (least risky)
Franchising
Strategic alliance
Joint venture
Direct investment (most risky) |
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Term
| Global communication strategies (things to consider) |
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Definition
| Literacy rates Media availability Difference in language, culture, customs |
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