International Management - Textbook Chapter 1

MGT 340 - Textbook Chapter 1 Key terms and others

Chaebols

Very large, family-held Korean conglomerates that have considerable political and economic power

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

A trade agreement among 11 Pacific Rim countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

European Union (EU)

A political and economic community consisting of 27 member states.

Foreign direct investment (FDI)

Investment in property, plant, or equipment in another country.

Globalization

The process of social, political, economic, cultural, and technological integration among countries around the world.

International Management

The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments.

Keiretsu

In Japan, an organizational arrangement in which a large, often vertically integrated group of companies cooperate and work closely with each other to provide goods and services to end users. Members may be bound together by cross-ownership, long-term business dealings, interlocking directorates, and social ties.

Management

The process of completing activities efficiently and effectively with and through other people.

Maquiladora

A factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export.

Ministry of International Trade and Industry (MITI)

A Japanese government agency that identifies and ranks national commercial pursuits and guides the distribution of national resources to meet these goals.

Multinational Corporation (MNC)

A firm having operations in more than one country, international sales, and a nationality mix of managers and owners.

North American Free Trade Agreement (NAFTA)

A free trade agreement among the U.S., Canada, and Mexico that removed most barriers to trade and investment. It was renegotiated and replaced by the United States–Mexico–Canada Agreement (USMCA), signed in 2018.

Offshoring

The process by which companies undertake some activities at offshore locations instead of in their countries of origin.

Outsourcing

The subcontracting, or contracting out, of activities to endogenous organizations that had previously been performed by the firm.

United States–Mexico–Canada Agreement (USMCA)

A free trade agreement among the U.S., Canada, and Mexico that removed most barriers to trade and investment. It was renegotiated and replaced by the United States–Mexico–Canada Agreement (USMCA), signed in 2018.

World Trade Organization (WTO)

The global organization of countries that oversees rules and regulations for international trade and investment.

Where is the parent company of Braun household appliances (electric shavers, coffee makers, etc.) located?

The U.S.

Computer company Lenovo, best known for producing the Thinkpad laptop, was founded in which country?

China

The company that owns Jaguar is based in

India

Frozen food distributor Schwan’s Co. is now majority owned by a parent company located in?

South Korea

The firm that owns Green Giant vegetables is

U.S. - based

The owners of Godiva chocolate are

Turkish

The company that produce Vaseline is

Anglo-Dutch

The company that bought General Electric Appliances is headquartered in

China

The company that owns Holiday Inn is headquartered in

The U.K.

Tropicana orange juice is owned by a company that is headquartered in

The U.S.

Market Economy

When private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices.

Command Economy

Comparable to a monopoly in the sense that the organization has explicit control over the price and supply of a good or service.

Mixed Economy

Combination of a market and a command economy.