3 Drivers of Globalization are:

Which is NOT one of the reasons why businesses globalize?

What are the 4 factors that facilitate globalization?

Are where existing buyers or potential group of buyers meet sellers of goods, services, and information.

Is creating something of value such as consumer goods, machines, tools, materials.

The quality and quantity of goods and services that people receive. Per capita GDP is one indicator of the average standard of living in a particular country.

The pursuit of improved economic and social well-being by a country.

The total value of all the goods and services a country produces in one year.

The value of a country’s currency as shown by what it can buy in that country.

A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.

A tax on a good moved from one country to another (usually a tax on imports).

is the combination of learning and experiences that people in the same country or region share.

Which is NOT one of the 3 elements of culture:

Spoken/unspoken language and an element of culture:

Structures of society and 1 of the elements of culture:

Institutions, values, attitudes, and one of the elements of culture:

is a society characterized by individualism and are oriented around the self, being independent

Nearness or closeness:

Protects global businesses and is a systematic rating of the potential risks and rewards of doing business in a specific country.

A risk analysis that includes social, technological, economic, and political factors.

The 4 factors of a STEP Analysis are:

A STEP Analysis factor related to language and customs:

A STEP Analysis factor related to energy, transportation, and communications:

A STEP Analysis factor related to capital and resources:

A STEP Analysis factor related to protectionism and conflicts:

The country in which a company that receives an investment from where a foreign company is based.

Indonesia getting a new Toyota manufacturing plant from the U.S. is an example of what type of country?

The country in which a company that makes an investment into a foreign company is based.

Toyota manufacturing plant wants to expand globally into Russia is an example of what type of country?

What are ways governments try to give a competitive edge to domestic companies?

taxes levied on imported goods

limits on the quantity of goods allowed to be imported into a country

government contributions through tax breaks and price controls that help local industries

bans on trade with certain countries. These are rare, and when they exist, it is usually for strategic or military/national security reasons.

When the value of a country’s exports is greater than the value of its imports.

When the value of a country’s imports is greater than the value of its exports.

When firms in a country concentrate on producing a product they have advantages producing, allowing these firms, and the country in which they are located, to become the most efficient producers of the product.

measures the difference between exports and imports.

When a firm can produce a good at a lower opportunity cost than another firm.

Organization that succeeded GATT and was founded to further reduce international trade barriers between countries.

Gets rid of most of the tariffs on items traded between the three member countries – U.S., Mexico, and Canada.

Why U.S. joined NAFTA?

A rise in prices due to the decline of a currency’s value.

What causes inflation to decrease currency?

Another word for money.

The value of one currency expressed in terms of another; the cost of a foreign currency in local currency.

The largest trading market in the world, where currency trading takes place.

3 Types of Foreign Exchange Transactions are:

A transaction in which the two parties agree to exchange the money immediately, or right on the spot.

A transaction in which the two parties exchanging currency agree to exchange it at a later, set date, at an exchange rate that they agree on in advance

A transaction that allows traders to determine in advance a fixed, or strike, price that they will be able to exchange their currencies at.

When an investor directly funds the purchase, building, or improvement of a physical asset rather than just puts money into a company.

When a company from one country (the home country) makes an investment of capital into either its own operations in another country (the host country) or into another company in the host country.

When a company from one country invests in a completely new business in a host country

Two business come together to form a new entity (business)

1 company acquires (take over) another company

2 companies team up/partner to produce a product or service (new business) that belongs to both of them.

an organization that helps countries/economies through surveillance, financial assistance, and technical assistance. It deals with currency exchanges between nations.

an organization that helps developing countries and reduce poverty. It is involved with funding projects within developing countries.

Choose all 3 of the different payment options for Exporters:

Which exporter payment option has the highest risk:

Which exporter payment option has the medium/high risk:

Which exporter payment option has the least amount of risk:

An exporter ships to distributors who sell them. It’s risk is that goods may not sell quickly or at all. This is related to which of the 3 export payment options?

The exporter sends the buyer a bill for the goods. It’s risk is that the buyer may not pay. This is related to which of the 3 exporter payment options?

A bank acts as an intermediary between the buyer and seller. The risk is the exporter must pay the bank a fee. This is related to which of the 3 exporter payment options?

A document ordered by an importer from a bank to guarantee shipment of specific goods, and to ensure the supplier (exporter) they will be paid.

The document that an exporter receives from its customer in another country to ensure the exporter that they will get paid for the goods they ship to that customer; also called a draft.

A document that a shipping company gives to an exporter that serves as a receipt for the goods.

best strategies to promote, market, and advertise products/services.

4 P's of Marketing are: (Select all 4)

means the ways a product satisfies the wants and needs of the customer

the prices of the products and services their firms sell.

refers to place or placement, the way a product or service is distributed in a certain market.

is the advertising, publicity, and sales technique for a product or service.

is marketing that sends promotional messages directly to targeted prospective customers. The goal of direct marketing is to get a response from the potential customer.

is a broad group of tools used to raise awareness about and create positive attitudes toward a product or service.

Advertisements, literature, trade shows, product fairs, door-to-door selling, coupons via text or email are all example of what type of marketing?

Public relations such as news stations, TV and radio ads, internet advertising such as social media, websites are all examples of what type of marketing?

This is because the product required significant investments, and the firms would like to recoup these investment costs. Also, high prices appeal to an exclusive market willing to pay a relatively high price. Luxury products use this strategy