Global Business final

float

when a currency’s value increases or decreases based on supply and demand

nixon monetary policy change

1971- Nixon ended the free convertibility of the U.S. dollar into gold and instituted price and wage freezes, among other economic measures.

inflation

the rate of increase in prices over a given period of time. decreases value of currency over time.

deflation

decrease in the general price level of goods and services. increases value of currency over time

pegged rates

Fixed exchange rates

licensing

defined as the granting of permission by the licenser to the licensee to use intellectual property rights, such as trademarks, patents, brand names, or technology, under defined conditions.

franchising

agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a foreign company for a specified period of time and receives a royalty in return.

exporting

the sale of products and services in foreign countries that are sourced from the home country

acquisition

transaction in which a firm gains control of another firm’s assets or stock, typically by purchasing its stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase price

greenfield venture

An international entry mode involving the establishment of a new, wholly owned subsidiary.

partnerships

involves a contractual agreement between two or more enterprises stipulating that the involved parties will cooperate in a certain way for a certain time to achieve a common purpose

safety stock

this inventory helps ensure that the company won’t run out of products if there’s a delay or unexpected crisis in a distant manufacturing region and avoid a stock out

stock out

there is no more stock of the company’s product.

supply chain disruption plans

the recent global pandemic, climate change, evolving regulations, international tax agreements, cyber threats, and geopolitical conflicts.