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What is the strategy where a company enters a new international market by partnering with a local firm?
Joint venture
What is dumping?
When a foreign producer sells goods below cost in a domestic market
What is the name of the tax levied on imported goods that makes them more expensive in the domestic market?
tariff
what is reshoring?
the practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.
making little to no attempt to change or modify the product when selling to new foreign markets
What is brain drain?
When highly educated and talented people find jobs overseas
China's finance ministry has announced an ____ tariff on goods imported from the US, retaliating against recent levies imposed by the White House.
84%
What is the term for a situation where the value of a country's currency decreases relative to others, making exports cheaper?
depreciation
businesses are likely to expand into foreign markets during which stage of the product life cycle
What is meant by ethics?
Principles and acceptable norms that govern behaviour
What is meant by 'trade liberalisation'?
the removal of rules and regulations that restrict free trade
What is a trade bloc?
a group of countries that has signed a regional trade agreement to reduce or eliminate tariffs, quotas and other protectionist barriers between themselves
What organization works to regulate international trade and ensure trade flows as smoothly and predictably as possible?
WTO
Starting
Construction permits
Electricity
Registering property
Getting credit
Protecting minority investors
Paying taxes
Trading across borders
Enforcing contracts
Resolving insolvency
What is the term for when MNCs use their influence to change local regulations, potentially to the benefit of the business?
lobbying
The takeover of the German shipping company Hamburg Sud in 2017 by Danish conglomerate Maersk, the largest shipping company in the world, is an example of what type of FDI?
Horizontal
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam
Which country is home to the largest number of multinational corporations?
USA
What are Porter's 5 forces?
Bargaining power of suppliers
Bargaining power of buyers
Threat of new entrants
Substitutes
Rivalry among existing firms
What is glocalisation?
a combination of ethnocentric and polycentric to develop and sell products to customers with reflect specific local customs, tastes and traditions
What market entry strategy involves the establishment of a retail presence in a foreign country, usually through stores owned and operated by a foreign company?
Franchising
What financial instrument can companies use to hedge against currency fluctuations in international trade?
What is one major challenge MNCs face when managing operations across multiple countries?
Cultural differences or managing local regulatory compliance
What is the formula for ARR?
(Average Annual Profit / Initial Investment) × 100.
What term refers to the process of transferring profits earned by a subsidiary in a foreign country back to the parent company in its home country, often involving exchange rate risks and local taxation laws
Repatriation of Profits