Term
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Definition
| business whose activities are carried out across national borders. This definition includes not only international trade and foreign manufacturing but also the growing service industry in areas such as transportation, tourism, advertising, construction, retailing, wholesaling, and mass communications. |
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Term
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Definition
| the operations of a company outside its home or domestic market; many refer to this as a business conducted within a foreign county. This term sometimes is used interchangeably with international business. |
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Term
| Multidomestic company (MDC) |
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Definition
| an oranization with multicountry affiliates, each of which formulates its own business strategy based on preceived market differences. |
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Term
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Definition
| an organization that attempts to standardize and integrate operations worldwide in most or all functional areas. |
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Term
| International company (IC) |
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Definition
| a global or multidomestic company |
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Term
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Definition
| the tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this intergration happen |
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Term
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Definition
- political
- Technological
- market
- cost
- competitive
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Term
| foreign direct investment (FDI) |
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Definition
| direct investments in eqipment, stuctures, 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 |
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Term
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Definition
| the transportation of any domestic good or service to destination outside a country or region; the opposite of importing, which is the transportation of any good or service into a county or region, from a foreign origination point. |
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Term
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Definition
| all the forces surrounding and influencing the life and development of the firm |
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Term
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Definition
external forces over which management has no direct control, although it can exert an influence.
external forces:
- competitive: kinds and numbers of competitors, their locations, and their activities
- distributive: national and international agencies available for distributing goods and serves
- economic: variables( such as gross natonal product [GNP], unit labor cost, and personal consumption expendicture)that influcen a firms's ability to do business
- Socioeconomic: characteristics and distribution of the human population
- Financial: variables such as interst rates, inflation rates, and taxation
- Legal: tha many foreign and domestic laws governing how international firms must operate
- Physical: elements of nature such as toography, climate, and natural resources
- Political: elemets of nations' poliical climates such as nationalism, forms of government, and international organizations
- Sociocultural: elements of culture(attitues, belives, opinions) important to intl managers
- labor: compotions, skills, and attitues of labor
- technologial: the technical skills and equipment that affect how resources are convertec to products
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Term
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Definition
| internal forces athat management administers to adapt to changes in the uncontrollable forces |
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Term
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Definition
| All the uncontrollable forces originating in the home country that surrounded and influences the firm's life and development |
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Term
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Definition
| all the uncontrollable forces originating ouside the home country that surrounded and influence the firm |
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Term
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Definition
| interaction between domestic and foreign environmental forces or between sets of foreign environmental forces |
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Term
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Definition
| the overseas procurment of raw materials, components, and products |
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Term
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Definition
| the purchase of stocks and bonds to obtain a return on the funds invested |
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Term
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Definition
| the purchase of sufficient stock in a firm to obtain significant managment control |
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Term
| preferential trading arrangement |
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Definition
| an agreement by a small group of nations to establish free trade among themselves while maintaining trade restrictions with all other nations. |
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Term
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Definition
| a government-designated zone in which workers are permitted to import parts and materials without paying import duties, as long as thse imported items are then exported once they have been processed or assembled. |
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Term
| in-bond plants (maquiladoras) |
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Definition
| production facilites in Mexico that temporarily import raw materials, components, or parts duty-free to be manufactured, processed, or assembled with less expensive local labor, after which the finished or semifinished product is exported. |
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Term
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Definition
Product
markets
promotion
where value is added to the product
competitive strategy
use of non-home-country personnel
extent of global ownership of the firm |
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Term
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Definition
| economic philosophy based on the belief that (1) a nation's wealth depends on accumulated treasue, usually gold, and (2) to increase wealth, government policies should promote exports and discourage imports |
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Term
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Definition
| theory that a nation has absolute advantage when it can produce a larger amount of a good or service for the same amount of imputs as can another country when it can produce the same amount of a good or service using fewer inputs thatn could anther country. |
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Term
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Definition
| theory that a nation having absolute disadvantages in the production of two goods with respect to another nation has a comparateive or relative advantae in the production of the good in which its absolute disadvantage is less |
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Term
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Definition
| locating activities in another nation |
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Term
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Definition
| an arrangement whre one or more activities that could be provided in-house are instead provided by another company |
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Term
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Definition
| Heckscher-Ohlin theory that countries export proucts requiring large amounds of their abundant production factors and import products requiring large amounts of their scarce producton factors |
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Term
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Definition
| the price of one currency stated in terms of another currency |
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