Global Business

Two countries agree to open their borders to to international business with one another without tariffs.

How does this affect global business?

It leads to developing free trade policies with strategic partners.

A country uses its established tech infrastructure to produce a good.

What is the impact of this infrastructure on trade?

It will create barriers for entry for other nations.

What was the economic impact of the NAFTA?

The shift of jobs away from low comparative advantage industries

What negative outcome on political systems comes from globalization?

Creation of isolationist policies

Unified trading policies with non-members is a key feature of what regional economic integration?

Customs union

What is a drawback of regional economic integration?

Increased exclusive internal trade

What has the WTO been criticized for?

Adoption of labor standards protecting labor rights

A company wants to hold a direct operating presence in a foreign country so it buys a company in the target country and runs the operation.

What you of business agreement is this?

Subsidiary

A MNC hires a distributor to manage the distribution of products in a new international market that it recently entered.

What entry strategy is this?

Exporting

A company has entered several foreign markets and maintains the same branding throughout.

What is the name of this marketing strategy?

Standardization

A company would like to have direct operating presence in a foreign country. They are concerned about being exposed to the highest levels of risk and slow market entry.

What entry strategy is this?

Subsidiary

What is a disadvantage to the poly centric approach?

Dual demands for shared resources

A global company competes in three areas: washers, driers and refrigerators.

What type of departmentalization is this?

Product

Which form of funding requires low cost of capital and does not require time to mature?

Loans

What is an example of a micro risk of MNC.

Government nationalization of assets

What process reduces waste in the manufacturing process?

Lean manufacturing

What factor should be considered when deciding on a shipping location?

Value-to-weight ratio

What is an advantage of using intermediaries in an indirect distribution channel?

Reduces the upfront costs with the use of an existing channel.

What economic sector is slowest to AI?

Education

A business is entering a global market at the same time it has been trying to improve CSR.

What CSR goal should they remember?

Increase shareholder trust via high ethical standards

What convention provides gap fillers for terms that may not be expressly stated in agreements?

The common law