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Explain how the component of 'GEOGRAPHY' is vital for international business?
Determines climate, natural resources, proximity, available water, terrain, ect
Explain how the component of 'POLITICAL/ECONOMIC DEVELOPMENT' is vital for international business?
Determines how government interacts with society, type of economy, community specialty, literacy and reading levels, use of resources
Explain how the component of 'INFRASTRUCTURE' is vital for international business?
Determines health of roads, buildings, energy grid, type of energy, pipings, ect
Explain how the component of 'CULTURE' is vital for international business?
Determines what values the community focuses on, what religion, language, ect
Explain how the component of 'LEGAL' is vital for international business?
Determines what laws are restrictive and give freedom to constitiuents
Define an 'IMPORT'
When a country purchases and bring goods in from another country
What is franchising?
Ex: McDonalds
Define 'Export'
When a country sells and ships goods to another country
What is a multinational strategy?
Modifying products regionally for customers
What is a global strategy?
A company whose product does not change globally
What does 'licensing' mean?
Giving the right to use a logo, or name, for selling purposes
What is a trade deficit?
When a country buys more than they sell to another (Expenses higher than Revenue)
What is a joint venture?
When two companies come together to achieve a common goal
What is a trade surplus?
When a country sells more than they buy to another (Revenue higher than Expenses)
Why would a country want to make it more difficult to trade?
-Political decisions
-Warfare
-Focus buying domestically
What is a Free Trade Zone?
When a region has an agreement between multiple countries to eliminate trade rates/taxes
What is a tariff?
Taxes on imports
What is a quota?
setting a limit on the quantity of a product that may be imported or exported within a given period to regulate international trade
Why would someone want to encourage trade?
-Reduce prices
-Faster arrival of products
-Stimulate global economy
Tariffs
What trade agreement replaced NAFTA?
USMCA
The European Union (EU) is an example of a what?
Common Market
What is an absolute advantage?
exists when a country can produce a good or service at a lower cost than other countries
What is a comparative advantage?
a situation in which a country specializes in the production of a good or service at which it is relatively more efficient
What is an embargo?
stopping the export and import of a product