BUSMHR 2000 Exam 1
Study online at https://quizlet.com/_b4402
1. • Globalization The trend toward increased cultural and economic connectedness between peo-
ple, businesses, and organizations throughout the world.
2. Global Institu- (1) -Help manage, regulate, and police the global marketplace.
tions -Promote the establishment of multinational treaties to govern the global business
system.
- General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO),
International Monetary Fund (IMF), World Bank, United Nations (UN).
3. WTO The World Trade Organization - an international body that enforces agreements
that reduce barriers to international trade; successor to the GATT
4. IMF International Monetary Fund//a United Nations agency to promote trade by in-
creasing the exchange stability of the major currencies
5. International The business activites necessary for creating, shipping, and selling goods and
Business services across national borders.
6. International Any firm, regardless of size, that is engaged in international business
firm
7. MNE Multinational Enterprise. a global firm that has corporate units located in foreign
countries.
8. Market motives the motivation of a company to seize through trade and/or investment or stand it's
ground in the face of competitive international business
9. Economic Mo- the motivation to increase return through higher revenues or lower costs through
tives international raw materials, natural resources, a cheap labor supply for manufac-
turing goods
10. Strategic Motives the motivations leading firms overseas to capitalize on distinctive resources and
capabilities developed at home. These can include technologies and Economies
of Scale.
1/8
, BUSMHR 2000 Exam 1
Study online at https://quizlet.com/_b4402
11. Economies of as a company produces larger numbers of a particular product, the cost of each
Scale of these products goes down
12. International ver- the variations in business seen locally versus overseas including environmental
sus Domestic dynamics and operational nature
Business
13. Environmental Currency, inflation, interest rates, accounting practices, cultures, social customs,
Dynamics laws, political stability of another country
14. Operational Na- communication, coordination, motivation, differences in organizational principles
ture and management philosophies, made increasingly more difficult in an interna-
tional setting
15. risk the unpredictability of operational and financial outcomes
16. uncertainty the unpredictability of environmental or organizational conditions that affect firm
performance
17. Mercantilism 1st theory of international trade- an economic policy under which nations sought
to increase their wealth and power by obtaining large amounts of gold and silver
and by maximizing exports and minimizing imports
18. Mercantilism as a the value of your currency goes up, consumers import cheaper goods, and the
"zero sum" game currency goes back down
19. Neo-Mercantil- countries with large trade surplus - trade poicy under whic a country relentlessly
ism tries to maximize its trade surplus even at the sacrifice of its trading partners
welfare
Ex. CHINA
20. Absolute Advan- Adam Smith- Laissez-faire Economics- Market will reach efficient end by itself and
tage Theory government intervention is counter productive
2/8
Study online at https://quizlet.com/_b4402
1. • Globalization The trend toward increased cultural and economic connectedness between peo-
ple, businesses, and organizations throughout the world.
2. Global Institu- (1) -Help manage, regulate, and police the global marketplace.
tions -Promote the establishment of multinational treaties to govern the global business
system.
- General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO),
International Monetary Fund (IMF), World Bank, United Nations (UN).
3. WTO The World Trade Organization - an international body that enforces agreements
that reduce barriers to international trade; successor to the GATT
4. IMF International Monetary Fund//a United Nations agency to promote trade by in-
creasing the exchange stability of the major currencies
5. International The business activites necessary for creating, shipping, and selling goods and
Business services across national borders.
6. International Any firm, regardless of size, that is engaged in international business
firm
7. MNE Multinational Enterprise. a global firm that has corporate units located in foreign
countries.
8. Market motives the motivation of a company to seize through trade and/or investment or stand it's
ground in the face of competitive international business
9. Economic Mo- the motivation to increase return through higher revenues or lower costs through
tives international raw materials, natural resources, a cheap labor supply for manufac-
turing goods
10. Strategic Motives the motivations leading firms overseas to capitalize on distinctive resources and
capabilities developed at home. These can include technologies and Economies
of Scale.
1/8
, BUSMHR 2000 Exam 1
Study online at https://quizlet.com/_b4402
11. Economies of as a company produces larger numbers of a particular product, the cost of each
Scale of these products goes down
12. International ver- the variations in business seen locally versus overseas including environmental
sus Domestic dynamics and operational nature
Business
13. Environmental Currency, inflation, interest rates, accounting practices, cultures, social customs,
Dynamics laws, political stability of another country
14. Operational Na- communication, coordination, motivation, differences in organizational principles
ture and management philosophies, made increasingly more difficult in an interna-
tional setting
15. risk the unpredictability of operational and financial outcomes
16. uncertainty the unpredictability of environmental or organizational conditions that affect firm
performance
17. Mercantilism 1st theory of international trade- an economic policy under which nations sought
to increase their wealth and power by obtaining large amounts of gold and silver
and by maximizing exports and minimizing imports
18. Mercantilism as a the value of your currency goes up, consumers import cheaper goods, and the
"zero sum" game currency goes back down
19. Neo-Mercantil- countries with large trade surplus - trade poicy under whic a country relentlessly
ism tries to maximize its trade surplus even at the sacrifice of its trading partners
welfare
Ex. CHINA
20. Absolute Advan- Adam Smith- Laissez-faire Economics- Market will reach efficient end by itself and
tage Theory government intervention is counter productive
2/8
