International business chp 1

three factors of business operations are

physical, competitive and institutional

4 examples of institutional and physical factors are

1 Geographic influences , cultural factors , political policies and practices and economic polices

the three examples of competitive factors are

competitive product strategy , company resources an experience and competitors

the modes of international business operations are

merchandise exports and imports , service exports an imports and investments

the means of international business operations are

1 marketing 2 manufacturing an supply chain management 3 accounting and finance 4 human resources

Globalization

is the widening and deepening of independent relationships among people from different nations

international business is

all commercial transactions that take place among countries

7 factors that contributes to the growth of globalization

1 rise in technology 2 liberalization of cross border trade 3 development of services that support International business 4 growth of consumer pressures 5 increase in global competition 6 changes in political situations 7 expansion of national cooperation

governments reduce restrictions for three reasons

1 citizens want greater variety of goods and services 2 competition becomes more efficient 3 to encourage countries to lower their barriers

born global companies

are companies that have a global focus due to their founders experience and knowledge of foreign markets

developing economies

are economies that have low industrialization an low standard of living

sovereignty

is the freedom to act without externally imposed restrictions

offshoring

is the dependence of production in a foreign country

reshoring

is when firms bring operations back to their home country

turnkey operations

are construction projects performed under contracts that are transferred to owners when working

management contracts

is when a company provides personnel to perform management functions

Royalties

are payments for the use of an asset

licensing agreements

are contracts where firms allow others to use some assets

franchising

is a contract in which a company assist another company on a continual basis

foreign investment

is ownership of foreign property in exchange for financial return

foreign direct investment

is when a investor holds interest in a foreign company

joint venture

is when two or more companies share ownership

portfolio investment

is financial interest in another entity

strategic alliance

is an agreement of importance to a partner not in a joint alliance

multinational enterprise

is any company with foreign direct investments

institutions

are systems that structure social interactions

internationalization

is the process of increasing the enterprise of a local company in a international market

internationalization focuses on

the expansion of client base of local business in a international market

results of internationalization

is an increase in influence of enterprises in local markets

Globalization

is the process of integrating local markets into one global market

the focus of Globalization

is the exchange of products and services

the result of globalization

is a decrease of global market trade barriers and open markets

technological Globalization

is the accelerated spread of technology an information

Trade liberalization

is the removing or reducing of trade barriers

political and legal factors of international business are

Government policies , political stability ,legal systems , intellectual property , trade agreements , corporate social responsibility , labor laws and poltical lobbying