Terms
Theories
Government Policies
Cultural Differences
Misc.
100
business activities that occur between two or more countries
international business
100
To gain a trade advantage, a country should specialize in products or services that it can provide more efficiently than can other countries
Comparative Advantage theory
100
taxes on foreign goods to protect domestic industries and to earn revenue
Tariffs
100
Refers to the customs, beliefs, values, and patterns of behavior of the people of a country or group
culture
100
Selling its products or services to buyers in another country
exporting
200
A group of two or more countries who agree to remove all restrictions between them on the sales of goods and services
Trading Bloc
200
Companies look for new markets when products are in the maturity and decline stages of the product life cycle
product life cycle theory
200
Limits the quantity or value of units permitted to enter a country
Quota
200
Explain low context
people communicate directly, blunt or straight to the point
200
is a firm that owns or controls production or service facilities in more than one country.
multinational firms
300
When one company allows a company in another country to make and sell products according to certain specificiations
International licensing
300
To prolong the life of the product, firms first _____ their products .
ship
300
Practice of selling goods in a foreign market at a price that is below cost or below what it charges in its home country.
Dumping
300
Provide an example of a high context country
Japan
300
NAFTA stands for?
North American Free Trade Agreement
400
Firms agree to cooperate on certain aspects of business while remaining competitors on other aspects
Strategic alliances
400
How does the product-life cycle theory relate to trade and investment?
Transportation is costly and instead of shipping, the company will built factory in the foreign country
400
Explain nontariff barriers
nontax methods of discouraging trade, barriers are deliberately created to protect the domestic producers (steering wheel)
400
Why is it important for business managers to research foreign countries before relocating?
cultural shock, family, language barrier, time
400
What are the two major international institutions?
International Monetary Fund and World Bank
500
When the firm sets up a business abroad on its own without any partners
Wholly owned subsidiary
500
Provide an example of comparative advantage
India-tea Brazil-coffee
500
Why would a country have an embargo or sanction on another country?
To protect their country from harm, example if we sold weapons to another country
500
Would a foreign country hire a manager from the home country or foreign country? Why
Most likely home country, because the manager would understand the culture
500
International business has become more dominant in the United States since
World War II or 1945
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