MGT 302 exam 1 notes

Globalization of Markets refers to __________.

the merging of distinctly separate national markets into a global marketplace.

An example of Globalization of Production is __________.

sourcing goods and services from various locations worldwide.

Significant differences still exist among national markets in terms of __________.

consumer tastes and preferences.

The __________ limits to the globalization of production include transportation costs and exchange rate fluctuations.

challenges.

Managing a global web of suppliers can be __________.

complex.

The __________ of the global supply chain means that something will go wrong eventually.

volatilility.

Cultural differences require companies to __________ their marketing strategies.

customize.

The Great Depression led to a wide shift towards __________.

socialism.

The Bretton Woods agreement aimed to __________ exchange rate risk.

eliminate.

Phase 5 of globalization, which started in 2016, emphasizes __________.

deglobalization.

The benefits of globalization are often __________ and thus easily taken for granted.

unseen.

Patents provide exclusive rights for __________ for a defined period.

the manufacture, use, or sale of an invention.

The term __________ refers to the protections granted to creators of intellectual property.

intellectual property rights.

To be successful in international business, companies must understand the __________ systems of different countries.

legal.

The most widespread legal system globally is the __________ system.

civil law.

Market economies prioritize __________ over state control.

private ownership.

Totalitarianism involves __________ control over all state functions.

absolute.

In an economic system, __________ goods and services ownership is essential.

the allocation of.

The goal of fiscal policy is to influence the economy through changes in __________ and spending.

taxation.

__________ is a measure of the total monetary value of goods produced in a country.

GDP.

Subsidies are government payments to domestic producers that lower __________ costs.

production.

__________ are duties imposed by a government on imported goods.

Tariffs.

The main purpose of voluntary export restraints is to avoid __________ trade actions.

punitive.

Regional Economic Integration (REI) seeks to eliminate __________ barriers to trade.

trade.

The Council of the European Union is a key decision-making body that represents __________.

individual member nations.

The __________ ensures EU law is interpreted uniformly across member countries.

Court of Justice.

The _______ is composed of 27 member countries and is the second largest economy in the world.

European Union (EU).

Benefits of the Euro include lower foreign __________ costs.

exchange.

Limitations to globalization can arise from __________ policy changes in different countries.

government.

Increased __________ drives global demand in international business.

consumer expectations.

The WTO is primarily a __________ for settling disputes between countries.

forum.

Economic policies widely impact __________ growth and stability.

macroeconomic.

The primary goal of the International Monetary Fund (IMF) is to stabilize __________ rates.

exchange.

Export tariffs can impose additional costs on __________ countries.

foreign.

The Economic Union includes coordinated __________ and fiscal policies.

monetary.

GATT’s Article 24 allows regional trade arrangements impacting __________ sectors.

substantially all.

The relationship between a nation’s competitive advantage and its __________ conditions is pivotal to success.

demand.

The factors influencing globalization include a decline in __________ barriers.

trade.

Trade policies often protect __________ but can create inefficiencies.

inefficient industries.

Trade policy instruments include tariffs, subsidies, and __________ quotas.

import.

In a _________, countries agree on common barriers for external trade partners.

customs union.

Foreign Direct Investment involves a company investing in an entity outside its __________ country.

home.

The idea where countries specialize in economic sectors is known as __________ specialization.

economic.

The rapid development of the __________ has significantly changed global communications.

internet.

Antidumping policies restrict foreign firms from selling goods too __________ for their costs.

cheaply.

The Heckscher-Ohlin Theory emphasizes __________ differences in international trade.

factor endowments.

Economic Policy determines how a country will influence its __________ performance.

economic.

The strategic trade policy aims for __________ in favor of domestic industries.

protection.

__________ economies focus on the global efficiency and advantages of low-cost production.

Market.

The product life-cycle theory suggests that a product goes through __________ distinct stages.

four.

The primary objective of international trade theory is to explain the benefits of __________ across nations.

trade.

__________ innovation involves developing new goods and strategies within markets.

Product.

According to Mercantilism, countries should aim to maintain a trade __________.

surplus.

Innovative firms typically emerge from __________ economies.

market.

Trade agreements are attempts to remove __________ barriers and coordinate policies.

trade.

The current account records the import and export of __________ and services.

goods.

Regional trade agreements can sometimes lead to trade __________ between blocs.

diversion.

The __________ of a government impacts how effectively international firms operate within a nation.

political structure.

Economic Integration enhances the collective __________ of a region.

economic clout.

What is the European Parliament responsible for?

The European Parliament is responsible for representing EU citizens, making decisions about EU legislation, and overseeing other EU institutions.

What is the World Trade Organization (WTO)?

The WTO is an intergovernmental organization that regulates international trade, providing a framework for negotiating trade agreements and resolving disputes.

What are some key principles of the WTO?

Key principles of the WTO include the most-favored-nation (MFN) principle, national treatment, and transparency in trade.

What is the difference between monetary policy and fiscal policy?

Monetary policy involves managing a country's money supply and interest rates, typically controlled by the central bank; fiscal policy refers to government spending and tax policies.

What distinguishes the current account from the financial account in international trade?

The current account records the trade in goods and services and income transfers, while the financial account records investment flows into and out of a country.

What are some primary theories of international trade?

Primary theories of international trade include Absolute Advantage, Comparative Advantage, Heckscher-Ohlin Theory, and Product Life Cycle Theory.

What does the Heckscher-Ohlin Theory emphasize?

The Heckscher-Ohlin Theory emphasizes the role of factor endowments in determining trade patterns between nations.

How does fiscal policy influence economic performance?

Fiscal policy influences economic performance through changes in taxation and government spending, impacting aggregate demand.

What role does the WTO play in dispute resolution?

The WTO provides a forum for member countries to settle trade disputes and ensures that trade agreements are adhered to.

Common Law refers to __________.

a legal system based on court decisions and precedents rather than written laws or statutes.

Theocratic Law is defined as __________.

a legal system based on religious laws and principles.

Civil Law systems rely on __________.

comprehensive statutes and codes as primary sources of law.

GATT stands for __________.

General Agreement on Tariffs and Trade, an international treaty aimed at reducing trade barriers.

The IMF, or __________, assists countries in stabilizing their economies through financial aid and policy advice.

International Monetary Fund.

New trade theory suggests that __________ can influence trade patterns and market structures.

economies of scale and network effects.

What distinguishes common law from civil law?

Common law is grounded in judicial precedents, whereas civil law is based on codified statutes.

How does the IMF promote international monetary cooperation?

The IMF provides financial resources, policy advice, and technical assistance to member countries to stabilize their economies and promote sustainable growth.

What effect does GATT have on international trade?

GATT established a framework for negotiating trade agreements, reducing tariffs, and promoting fair competition among countries.

In what situation would a country adopt theocratic law?

A country may adopt theocratic law when its legal system is heavily influenced by religious doctrines and governance.

What is the significance of economies of scale in new trade theory?

Economies of scale suggest that as production increases, the cost per unit decreases, allowing countries to produce specific goods more efficiently and enhancing trade.