Term
| cost reduction motives for international expansion |
|
Definition
| ...consist of primarily cutting factor costs. Lower wages, transportation costs, decreased production costs, Also, host government incentives and moving into countries with less [environmental] regulations on act as motives as well. |
|
|
Term
| The five stages an uninational or domestic company goes through in its evoltuion into an international enterprise... |
|
Definition
| foreign Inquiry, Export manager, export department and direct sales, sales branch es and subsidiaries, assembly abroad, production abroad, integration of foreign affiliates. |
|
|
Term
| Foreign Direct Investment (FDI) |
|
Definition
| a long-term equity investment in a foreign affiliate or subsidiary which, as a result of/in exchange for the investment, gives the parent company varying degrees of managerial control over the foreign operation. |
|
|
Term
| a mindset of global orientation... |
|
Definition
| ...is a mindset focused on the cost benefits of scale or scope economies. Of primary importance to the firm is the need to maximize its collective organization through an efficient configuration of all its international activities. |
|
|
Term
| the three objectives in global strategy... |
|
Definition
| ...are achieving efficiency in current operations, managing risks, "innovating, learning, and adapting". |
|
|
Term
|
Definition
| the business activities of private or public enterprises that involve the movement of resources across national boundaries. |
|
|
Term
|
Definition
| the process of accomplishing the global objectives of a firm by : effectively coordination across national boundaries the procurement, allocation, and utilization of the human, financial, intellectual, and physical resources of the firm and by effectively charting the path toward the desired organization goals by navigating the firm through a global environment that is not only dynamic but often very hostile to the firm's very survival. |
|
|
Term
|
Definition
| the orientation an international firm takes to balance the coordinatation worldwide activities to maximize the collctive organization while manageming the multidomiestic orientation that responds to individual country's opportunities and constraints. |
|
|
Term
| market seeking motives for international expansion |
|
Definition
| The need for domestic companies to expand internationally is influenced by: the desire for a greater economies of scale brought on by opportunities of scaling upwards through expansion, the fear of a domestic market becoming saturated. |
|
|
Term
| multidomestic orientation |
|
Definition
| an international mindset in which the firm manages each market individually rather than attempting to gain cost advantages from a global integration effort. |
|
|
Term
| strategic motives for international expansion |
|
Definition
| any decision which is made by a firm thinking of expanding internationally that are made to maintain or enhance the competitive position of a company in an industry or market. |
|
|
Term
| transnational orientation |
|
Definition
| an international mindset in which the company seeks to become globally efficient while still being locally responsive. |
|
|
Term
| UNCTAD Transnationality index |
|
Definition
| UNCTAD's (United Nations Conference on Trade and Development) chart which compares the trans nationality of countries in which international companies operate. |
|
|
Term
|
Definition
| ASEAN (Association of Southeastern Asian Nations) is a trade bloc formed in 1967 by Indonesia, Malaysia, Philipines, Singapore, and Thailand. Bruinei Darussalam, vietnam, laos, myanmar, and cambodia are now all included. |
|
|
Term
|
Definition
| a market which provides common external tariffs and quotas against third countries and free movement of people, capital, and goods and services among member countries. |
|
|
Term
|
Definition
| an agreement between nations within a trade bloc which eliminates the duties and also establishes common external positions regarding trade with non-bloc members. |
|
|
Term
|
Definition
| The creation of a trade agreement between countries which results a trade bloc. |
|
|
Term
| reasons for economic integration |
|
Definition
| Geographical proximity, common economic and political interests, similar ethnic and cultural backgrounds, similar levels of economic development, similar views on the nutual benefits of free trade, and regional political needs and considerations (to make the region better (a rising tide lifts all boats)). |
|
|
Term
|
Definition
| this is when the member countries harmonize the monetary and fiscal policies, environmental regulations, health and sefty measures, agricutltural policy, and technical standards. When this happens, countries transfer considerable economic sovereignty to supranational institutions. |
|
|
Term
|
Definition
| A trade bloc created after WWII to unite the nations of Europe through peaceful means and to create conditions for the economic recovery and growth of Europe after the devastation cause by the war. it contains 15 countries and 320 million people. The countries share some of their sovereign powers (considered to be an economic union). |
|
|
Term
|
Definition
| the loosest form of economic integration in whichbloc member countries eleiminate trade barriers on trade among member countries but retain the right to impose their own separate trade barriers on trade with countries outside of the trade bloc. |
|
|
Term
|
Definition
| Stands for General Agreement on Tariffs and Trade. Created after WWII for the purpose of reducing tariffs and removing nontariff barriers to international trade. 23 industrialized countries originally agreed to set fair and common rules for the way each country must conduct its trade with others. Now 117 nations are a part of this. |
|
|
Term
|
Definition
| the growing economic dependence of countries worldwide and the increasing integration of economic life across political boundaries through the increasing volume and variety of cross-border transactions in goods, services, capital flows, and rapid and widespread diffusion of technology. |
|
|
Term
|
Definition
| Stands for the North American Free Trade Agreement. It went in effect in 1994 with the purpose of expecting to contribute to productive efficiency, enhanve the ability of Noth American producers to compete globally, and raise the standard of living of all three countries. |
|
|
Term
|
Definition
| the ultimate step in regional integration. Countires coordinate government and social policy on top of economic policies. The former societ union is an example of a political union. |
|
|
Term
|
Definition
| Stands for World Trade Organization. Created in 1994 to enforce the GATT agreement, it ultimately usurped GATT in 1995. It has become an institution which has the authority to set and eforce rules governing trade between more than 130 member countries. |
|
|
Term
| WTO dispute settlement procedure |
|
Definition
| this procedure calls for the establishment of a panel of trade experts who would be called upon to resolve disputes between member countries within a year of the dispute. Countries can be punished by being forced to change their laws or by being forced to face sanctions from other countries (usually in the form of higher tariffs). |
|
|
