Globalization
What is the term for the connection made among nations when economies freely move goods, labor, and money across borders?
Globalization
What is international trade?
International trade is the buying and selling of goods and services across national borders.
What is a foreign exchange rate?
The foreign exchange rate is the cost to convert one currency into another.
What is licensing in the context of international business?
Licensing is when a business sells the right to manufacture its products or use its trademark to another entity for a fee known as a royalty.
Define intercultural communication.
Intercultural communication is the process of sending and receiving messages between people of various cultures.
What are some benefits of globalization?
Benefits include creating new markets, jobs, and political relationships.
Define exports and provide an example.
Exports are goods and services produced within a country's borders and sold in another country. An example is China exporting electronic devices to the United States.
Name one factor that influences exchange rates.
Factors include political stability, changes in laws, nations involved in disputes, and economic conditions.
Describe a franchise and its components.
A franchise is the right to sell a company’s goods or services in a specific area. The franchisor owns the brand, and the franchisee buys the rights to use it.
What is English as a second language (ESL)?
ESL refers to the use of English by people with a different native language.
Name one way in which globalization affects political relationships.
It fosters interconnectedness and interdependence among nations, leading to diplomatic ties and alliances.
Explain the concept of absolute advantage.
Absolute advantage exists when a country can produce goods more efficiently and at a lower cost than another country.
What is a tariff?
A tariff is a governmental tax on imported goods.
What is a joint venture and when might a company pursue one?
A joint venture is a partnership of two or more companies that work together for a specific business purpose. Companies might pursue joint ventures to enter new markets or share resources and risks.
Explain the role of an interpreter.
An interpreter translates conversations between individuals who do not speak the same language, facilitating communication.
How does globalization create new markets?
By facilitating the exchange of goods and services across borders, opening up opportunities for businesses to tap into previously inaccessible markets.
What is the balance of trade?
The balance of trade is the difference between a nation’s exports and its imports.
Define a trade barrier and provide an example.
A trade barrier is government action taken to control or limit the amount of imports. An example is imposing quotas on imported steel.
List considerations a business should make when expanding internationally.
Considerations include labor laws, legal documents, logistics, workforce diversity, and intercultural communication.
What are the benefits of having a diverse workforce?
Benefits include increased creativity, innovation, and a broader perspective, leading to better problem-solving and decision-making.
Define global dependency and provide an example.
Global dependency is created when countries rely on each other for products. An example is a country relying on another for essential resources like oil or food.
Differentiate between a trade surplus and a trade deficit.
A trade surplus occurs when exports exceed imports, while a trade deficit occurs when imports exceed exports.
Explain the purpose of a trade agreement.
A trade agreement establishes conditions and terms for importing and exporting products between countries, promoting international trade and economic cooperation.
Discuss the significance of logistics in international business expansion.
Logistics involves planning and managing the flow of goods, services, and people to a destination, critical for ensuring efficient operations and delivery in international expansion efforts.
Discuss the challenges associated with intercultural communication.
Challenges include language barriers, differences in communication styles, cultural misunderstandings, and varying perceptions of norms and values.