Details Title: International Business Description: IB-Ch.1 Terms Total Flash Cards: 15 Created: 05/04/2009 16:58:46		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional International Studies Flashcards
Cards in this set: Term International Trade Definition Exchange of products and services across national borders; typically through exporting and importing. Term International Business Definition Performance of trade and investment activities by firms across national borders. Term Globalization of Markets Definition Ongoing economic integration and growing interdependency of countries worldwide. Term Exporting Definition Sale of products or services to customers located abroad, from a base in the home country or a third country. Term Importing/Global Sourcing Definition Procurement of products or services from suppliers located abroad for consumption in the home country or a third country Term International Investment Definition The transfer of assets to another country or the acquisition of assets in that country. Term International Portfolio Investment Definition Passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns. Term Foreign Direct Investment (FDI) Definition An internationalization strategy in which the firm establishes a physical presence abroad through acquisition of productive assets such as capital, technology, labor, land, plant, and equipment. Term Cross-Cultural Risk Definition A situation or event where a cultural miscommunication puts some human value at stake. Term Country Risk Definition Potentially adverse effects on company operations and profitability caused by developments in the political, legal, and economic environment in a foreign country. Term Currency Risk Definition Risk of adverse fluctuations in exchange rates Term Commercial Risk Definition Firm’s potential loss or failure from poorly developed or executed business strategies, tactics, or procedures Term Multinational Enterprise (MNE) Definition A large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries. Term Small and Medium sized Enterprise (SME) Definition A company with 500 or fewer employees in the United States, although this number may need to be adjusted downward for other countries. Term Born Global Firm Definition A young entrepreneurial company that initiates international business activity very early in its evolution, moving rapidly into foreign markets