Global Bus. Concepts
Commercial activities that involve transactions across national borders.
International Business
Selling good and services to another country
Export
Network of companies resources and processes to make the final product or service. From the supplier to the customer
Supply Chain
Process of changing one country money to a different country money
Currency Exchange
Group of countries that come into agreement to easily trade with each other
Trade Bloc
The process by which a business or other organizations develop international influence or start operating on an international scale.
Globalization
Buying goods or services from another country
Import
Trading goods or services instead of using money.
Countertrade
Record of all of the money a country receives from other countries
Balance of Payments
Chance that political changes in a country could harm a business
Political risk
A market outside your home country
Foreign Market
Tax placed on Imported goods by a govt
Tariff
When a cross-border entity makes an investment with lasting interest.
Foreign Direct Investment
The ability of a company to carry out an activity more effectively than an opposing party.
Comparative Advantage
Differences in language, customs, values, and traditions between countries
Cultural Differences
The buying and selling of goods between two or more countries.
Trade
A non-discrimination principle that forbids preferential treatment between countries in international trade.
Most-Favored Nation (MFN) Status
Companies involved in transactions across national borders, with bases and locations in different countries, adapting and adjusting to a certain country and serving
Multinational (MNC/MNE)
A global market where currencies are exchanged and their relative values are determined
Foreign Exchange (Forex) Market
Strategy when a country focuses on the production of goods for foreign markets
Export Led Growth
Example: Amazon
Globalization
Example: Ecuador selling roses to a different country like USA for valentines day
Export
Example: Toyota building assembly plants in the US.
Foreign Direct Investment
Example: China generally has a lower opportunity cost in producing consumer goods.
Comparative Advantage