International Trade, Agreements & Economics
This term refers to a tax imposed by one country on the goods and services imported from another country.
What is a tariff?
This is the name of the agreement that allows currency values to fluctuate freely according to supply and demand, without government intervention.
What is a floating exchange rate system?
This refers to the potential risks that businesses face when conducting business in foreign countries, which can include political instability or sudden regulatory changes.
What is political risk?
This concept, developed by Edward T. Hall, refers to how different cultures understand and approach time.
What is time orientation (monochronic vs. polychronic)?
This strategy focuses on value chain analysis, strategic arbitration driven business model across all countries.
What is a Transnational strategy?
This global trade agreement, signed in 1994, aimed to eliminate trade barriers between the U.S., Canada, and Mexico, and was later replaced by the USMCA in 2020.
What is the North American Free Trade Agreement (NAFTA)?
This organization, known for providing financial services to governments and businesses globally, plays a key role in maintaining stability in international exchange rates.
What is the International Monetary Fund (IMF)?
This term describes a company’s ability to adapt its business practices to the beliefs, rules, regulations, value systems, and customs of a foreign market.
What is cultural adaptability?
In high-context cultures, communication is often indirect, and the meaning of a message is conveyed through this.
What is non-verbal communication?
This business model allows companies to expand by selling their products in multiple international markets while adapting their offerings to local tastes and regulations.
What is a multi-domestic / multi national strategy?
This type of trade restriction is designed to limit the quantity of a good that can be imported into a country.
What is an import quota?
This financial instrument allows businesses to reduce the risk of exchange rate fluctuations when conducting international transactions.
What is a hedging contract?
This factor is crucial for international businesses when deciding where to locate manufacturing plants, as it affects production costs and global supply chains.
What is labor cost?
This dimension, identified by Geert Hofstede, refers to the extent to which a society encourages and values assertiveness, competitiveness, and achievement.
What is masculinity vs. femininity?
This market entry strategy involves a company establishing a business presence in a foreign country through ownership and control, asset building such as by building factories or opening branches.
What is foreign direct investment (FDI)?
The General Agreement on Tariffs and Trade (GATT) was replaced by this institution in 1995, which also administers trade disputes.
What is the World Trade Organization (WTO)?
A country with this type of currency system will tie its currency’s value to another country’s currency or a basket of currencies.
What is a pegged exchange rate?
This international agreement, formed in 1992, aims to address environmental sustainability and climate change on a global scale.
What is the Kyoto Protocol?
This communication style in cultures emphasizes direct and explicit messaging, where the words spoken convey the majority of the meaning.
What is low-context communication?
A company’s competitive advantage in the international market can be achieved through this model, which involves creating unique products or services that have value for global consumers.
What is differentiation strategy?
This term refers to the practice of a country deliberately lowering the value of its currency to make its exports cheaper and imports more expensive.
What is currency devaluation?
This term refers to the amount of one currency that can be exchanged for another currency.
What is the exchange rate?
This practice involves a company purchasing a foreign company to increase its global market share, diversify, or access new technologies.
What is an acquisition?
This term refers to the phenomenon where individuals assume their own culture is superior to others, often leading to misunderstandings in cross-cultural exchanges.
What is ethnocentrism?
This term refers to when a business forms a new legal entity, partnership or alliance with a foreign company to share resources, knowledge, and technology to enter new markets.
What is a joint venture?