Shared Flashcard Set

Details

Ch.6
n/a
22
Management
Undergraduate 2
03/26/2014

Additional Management Flashcards

 


 

Cards

Term
Difference between absolute advantage and comparative advantage
Definition
AA- countries have the absolute advantage over others if they can produce a product that other countries cant. Eg. South Africa produces diamonds better than in the U.S.

CA-Countries/producers should specialize in what they do best
Term
Definition
exchange of goods and services of different countries for monetary returns.
Term
countertrading
Definition
exchange of goods and services of different countries without an additional monetary return.

eg. Exchange aircraft for a fishing ship
Term
balance of trade
Definition
difference between the value of the goods a country exports and the value of the goods it imports
Term
protectionism
Definition
Factors that restrict trade: tarrifs, quotas, and embargoes
Term
State reasons why companies would want to expand their markets.
Definition
-more money
-if a country is bored with a product, the market could expand to a different country in which is new to the product
Term
tarrifs
Definition
a gov't imposed tax on imports. The increase of price on import products allows domestic products to compete
Term
quotas
Definition
restriction of the quantity of a product. This allows for producers to stay in business and to keep employees working.
Term
embargoes
Definition
punishing a country by disallowing it to sell products to another country or by not purchasing any products of another country because of a policy one doesn't like. Eg. Cuba
Term
Describe the global economy and state factors that led to it
Definition
companies compete actively with businesses from all around the world

Factors that led to this include:
-telecommunications: e-commerce, fax machines, email
-free trade areas
-political changes
Term
What are the forms of int. operations?
Definition
operations of selling products in foreign countries: foreign intermediary, licensing agreement, strategic alliance
Term
Foreign intermediary
Definition
A representative who works for multiple companies that market products in different countries. He/she will not provide first-class service because the FI is repping for multiple companies.
Term
Licensing agreement
Definition
An agreement between companies in which one company permits to sell a product of another company in return of a percentage of that company's revenue.
Term
Strategic Alliance
Definition
an alliance that enables two or more countries to pool resources and skills to reach common goals. Eg. Ford and Mazda
Term
Expatriate managers
Definition
a citizen of one country works in a different country. They have to know the language and culture of that country- the job lacks freedom.
Term
What are some cultural differences?
Definition
power distance, indidvidualism/collectivism, uncertainty avoidance, masculinity/femininity, long-term/short-term oriented,
Term
Power distance
Definition
high: hierarchy; power and status are important
low: people are equal
Term
Uncertainty Avoidance
Definition
high: must have job security; rule oriented
low: less structured; less rules
Term
Masculinity/Femininity
Definition
m: assertive, material success, ambition
f: relationship oriented, cooperation, quality of life
Term
Long-term/Short-term Orientation
Definition
l: stable, persistent, respect for tradition, fulfilling social responsibilities, maintaining status

s: live in the present, achieve quick results
Term
Coalitions
Definition
Countries help each other to improve the economic conditions of each other.

eg. OPEC
Term
Trade Blocs
Definition
an intergovernmental agreement that reduces trade restrictions

Eg. NAFTA, EU
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