International Business - Chapter 2 Flashcards

Flashcards for International Business, 8th Edition, Chapter 2 - Global Marketplaces and Business Centers

Learning Objective 1

Evaluate the impact of political and economic characteristics on international business opportunities.

Learning Objective 2

Appreciate the uses of national income data in making business decisions.

Learning Objective 3

Discuss North America as a major marketplace and business center in the world.

Learning Objective 4

Describe Western Europe as a major marketplace and business center in the world economy.

Learning Objective 5

Discuss Asia as a major marketplace and business center in the world economy.

Learning Objective 6

Assess the development challenges facing African, Middle Eastern, and South American countries.

The United States

The world’s largest economy, accounting for 21% of the world’s GDP in 2011.

Invoicing currency

A currency used in international trade.

Flight Capital

Money or assets that are moved rapidly out of a country due to political or economic instability.

The United States (Canada)

The dominant market for Canadian goods.

Lingering Risk in Canada

Conflict between French-speaking and English-speaking Canadians.

Mexico

The world’s most populous Spanish-speaking nation.

High income status for several island states in the Caribbean

Vibrant offshore financing or tourism industries contribute to this status.

Challenges in Central America and the Caribbean

Political instability, inadequate educational systems, weak middle class, and poverty.

The EU

Seeks to promote European peace and prosperity.

EU's most important economic member

Germany

EU's strong political leader

France

Former Soviet Satellite States in the EU: Restructured economies

Implented political, legal, and institutional reforms.

Other Western European countries

High Income Countries: Iceland, Norway & Switzerland. Middle Income Countries: Balkan countries.

Newly Independent States (NIS)

Soviet Union's collapse in 1991 led to these.

Russia

Difficult transformation from communism to a free-market system.

The 5 Central Asian Republics

Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan, and Kyrgyzstan.

Asia

Source of both high-quality and low-quality products and skilled/unskilled labor.

Japan’s economic success

Partnership between MITI and Keiretsu. Sogo shosha.

The Four Tigers

South Korea, Taiwan, Singapore, and Hong Kong.

Chaebol in South Korea

Samsung, Hyundai, Daewoo Group, and LG.

Taiwan's Economy

Reliance on family-owned private businesses and export-oriented trade policies.

Singapore

Thrives on reexporting, excellent port facilities, and sophisticated services.

Hong Kong

Deep, sheltered harbor; entry point to mainland China; banking and financial services.

China

Communist Party-led state with market-oriented economic policies.

Challenges in India

Corruption, overburdened infrastructure, and red tape.

Southeast Asian Countries

Thailand, Malaysia, and Indonesia (Low labor costs, recipients of FDI).

Africa Economy

Agriculture and Commodities

Oil is a key element in Middle Eastern Politics

Saudi Arabia

South America

Common political, social, and economic history, huge income disparities, and political instability.