Globalization and International Management Chapter 1

These flashcards cover key concepts related to globalization, international management, and economic systems, providing definitions and explanations to help prepare for the exam.

International Management

The process of applying management concepts and techniques in a multinational environment and adapting practices to different contexts.

Multinational Corporation (MNC)

A firm that operates in more than one country, has international sales, and a mix of nationalities among managers and owners.

Globalization

The social, political, economic, cultural, and technological integration among countries worldwide.

Offshoring

When company activities take place at offshore locations instead of their countries of origin.

Outsourcing

Contracting out to external organizations activities previously performed by the firm.

World Trade Organization (WTO)

The global organization overseeing rules and regulations for international trade and investment.

North American Free Trade Agreement (NAFTA)

A free-trade agreement between the U.S., Canada, and Mexico that removed most barriers to trade and investment.

United States-Mexico-Canada Agreement (USMCA)

Replaced NAFTA in 2020, maintaining key provisions and enacting minor changes.

Market Economy

An economic system where private enterprise reserves the right to own property and manage goods and services.

Command Economy

An economic system where the government has explicit control over the price and supply of goods and services.

Foreign Direct Investment (FDI)

The amount invested in property, plant, and equipment in another country.

BRIC Economies

Brazil, Russia, India, and China, projected to grow significantly by 2025.

Mixed Economy

A combination of market and command economies, reflecting both private ownership and government planning.

Maquiladora

A factory that imports materials on a duty- and tariff-free basis for assembly or manufacturing and re-export.

Emerging Markets

Nations with social or business activity in the process of rapid growth and industrialization.

Keiretsus

Large, vertically integrated corporations typical in Japan.

Chaebols

Major conglomerates in South Korea, including companies like Samsung and Hyundai.

ASEAN

The Association of Southeast Asian Nations, which promotes economic growth among its member countries.

Sub-Saharan Africa

Region characterized by its vast diversity of tribes and languages, facing challenges in political stability and economic development.