Global Business Midterm Topics

A tariff is a ___ imposed by a government on imported goods

tax

The primary goal of a tariff is to often make foreign products more ___. This encourages ___ products to be purchased

expensive, domestic

The ___ company pays the tariff when the goods enter the country. Many ___ this fee onto consumers.

importing, pass

Tariffs can lead to higher ___ for consumer goods, ___ from other countries, reduced ___, and disruption in the global ___ ___.

prices, retaliation, efficiency, supply chain

Tariffs impact U.S. car manufacturers by increasing their ___ costs (the cost of parts from ___, ___, and ___ as well as raw ___)

input, Asia, Mexico, Canada, materials

Important materials for car manufacturers are ___ and ___

steel, aluminum

Retaliatory tariffs on American cars by other countries have reduced ___ demand

export

Increased car prices from tariffs reduce ___ demand.

domestic

Tariffs create ___ discouraging investment and long-term planning

uncertainty 

To combat cultural illiteracy, companies should have managers study a host country’s ___, ___, ___ beliefs, and ___ structures. This can take shape in training programs

values, norms, religious, social

Companies, when entering new markets, should employ ___ experts and managers 

local 

Successful foreign firms tend to ___ their products, marketing, and management to local preferences. They should also study ___ five dimensions

adapt, Hofstede’s

Hofstede’s five dimensions of different cultures

1. Power distance

2. Individualism vs collectivism

3. Uncertainty avoidance

4. Masculine vs feminine

5. Long-term vs short-term orientation

Ethnocentrism is

the belief in the superiority of one’s own culture, leading individuals or companies to judge other cultures by their own standards

Being ethnocentric in international business can lead to these 4 things:

1. Communication barriers

2. Poor market fit

3. Damaged reputation

4. Employee friction

Rare earth minerals are important in producing advanced ___ like ___

technology, microchips

Rare earth minerals are also used in renewable ___ products, ___ vehicle batteries, and ___ systems

energy, electric, defense

Rare earth minerals are relatively abundant, but are rarely found in ___, economically ___ deposits

concentrated, exploitable

Extracting rare earths is ___, ___, and ___ challenging (producing toxic waste)

complex, costly, environmentally 

The country that currently dominates the global rare earth supply chain is ___, producing 60-70% of global output and refining almost 90% of rare earths.

China

Not wanting to rely on China’s rare earths, America has partnered with ___, ___, ___, and ___ to diversify global supply chains. It has also started ___ mining.

Australia, Canada, Vietnam, Japan, domestic

Developing countries rich in rare earths, like ___ and ___ nations, has become a target for foreign investment and a major strategy for both China and America.

Myanmar, African

The benefits, costs, and risks of doing business in another country depends on the nations ___, ___, and ___ systems as well as its stage of ___ and ___

political, economic, legal, development, demographics

Sources of political risks can come from ___ instability or ___ change, the unpredictability of ___, or ___ amongst elected officials.

government, regime, policy, corruption

Sources of economic risks can come from ___ conditions, ___ amongst officials, or an ___ growth trajectory. Investors judge this by the stability of ___, ___, ___, and ___ markets

macroeconomic, corruption, unreliable, currency, inflation, infrastructure, labor

Sources of legal risks stem from weak property ___, ___ amongst officials, and poor enforcement of ___ property

rights, corruption, intellectual

Increased risks demands increased ___ or ___. Can also lead to shorter contracts.

returns, insurance