INTERNATIONAL BUSINESS LONG QUIZ

refers to sourcing goods and services from

locations around the

map to take advantage of national

differences in the cost and quality of factors of

production

International Trade-Occurs

when a firm exports goods or

services to consumers in another

country.

Foreign direct investment (FDI) -

occurs when a firm invests resources

in business activities outside its home

town.

General Communication on

Tariffs and Trade-Eight rounds of negotiations

among member states (now

numbering 153) have

worked to lower barriers.

Moore’s Law-

predicts that the power of

microprocessor technology

doubles and its cost of

production falls in half

every 18 months

Containerization

revolutionized the communication of

business, significantly lowering the costs

of shipping goods over long distances.

The political economy of a nation refers to how

much the political, sociological, and legal systems of

a country are interdependent; they interact and

influence each other, and in doing so they affect

the level of economic well-being.

Collectivism refers to a economic system that stresses

the primacy of collective goals over individual goals.

Collectivism can be traced back to the Greek

philosopher, Plato (427 – 347 BC), but in modern

times, collectivism is equated with socialist.

Socialists advocate state ownership of the basic means of

production, distribution, and exchange. State-owned

enterprises are managed to benefit society as a whole, rather

than individual capitalist.

Personalism refers to philosophy that an individual

should have freedom in his own economic and

political pursuits.