FSU MAN3600 Exam 1
Study online at https://quizlet.com/_hz7qfj
1. global business the performance of trade and investment activities by firms across national
borders
firms organize, source, manufacture, market, and conduct other value-adding
activities on an international scale
2. globalization ongoing economic integration and growing interdependency of countries
world wide. Macrotrend of intense economic interconnectedness between
countries
Truest definition of globalization: Princess diana's death
3. multinational en- a large company with substantial resources that performs various business
terprises activities through a network of subsidiaries and affiliates located in multiple
countries
owes allegiance to no country
4. Foreign Direct In- an internationalization strategy in which the firm establishes a physical pres-
vestment (FDI) ence abroad through acquisition of productive assets such as capital, technol-
ogy, labor, land, plant, and equipment. Have control over assets acquired
5. portfolio invest- passive ownership of foreign securities such as stocks and bonds for the
ment purpose of generating financial returns
Does not entail management or control over assets.
Short-term
6. Major internation- Importing and exporting goods
al business activi- goods
ties for a typical services
firm direct investment
portfolio capital
7. Access to advanced technology
Ability to capitalize on product development
, FSU MAN3600 Exam 1
Study online at https://quizlet.com/_hz7qfj
Advantages of Superior financial strength
Multinational Busi- Depth and breadth of management talent
ness Reduce political risk
8. benefits of or Good for job creation
need for interna- Bring in wide range of products and services to a country
tional business at Expand consumer choices
the economy level exert pressure on domestic products to improve
improve standard of living
allows for economies of scale
allows firms to hone their competitive skills abroad
failure to become part of the global market assures a nation of declining
economic influence and a deteriorating standard of living
9. current US trade Trade deficit since 1980s, 43 billion per month
position 800 billion total, worse than any other country.
trade deficit is increasing
major issues: Trade with the Pacific Rim, Japan, and China
Trade with Canada and Mexico
10. costs of interna- Exporting jobs
tional business Wage rates of unskilled workers in advanced countries
Countries - MNE dependent
Loss of control and sovereignty
11. culture Multidimensional
Integrated system of learned behavior patterns that are characteristic of the
members of any given society
12. acculturation The process of adjusting and adopting to a specific culture other than one's
own, one of the keys to success in international operations
13. language
Study online at https://quizlet.com/_hz7qfj
1. global business the performance of trade and investment activities by firms across national
borders
firms organize, source, manufacture, market, and conduct other value-adding
activities on an international scale
2. globalization ongoing economic integration and growing interdependency of countries
world wide. Macrotrend of intense economic interconnectedness between
countries
Truest definition of globalization: Princess diana's death
3. multinational en- a large company with substantial resources that performs various business
terprises activities through a network of subsidiaries and affiliates located in multiple
countries
owes allegiance to no country
4. Foreign Direct In- an internationalization strategy in which the firm establishes a physical pres-
vestment (FDI) ence abroad through acquisition of productive assets such as capital, technol-
ogy, labor, land, plant, and equipment. Have control over assets acquired
5. portfolio invest- passive ownership of foreign securities such as stocks and bonds for the
ment purpose of generating financial returns
Does not entail management or control over assets.
Short-term
6. Major internation- Importing and exporting goods
al business activi- goods
ties for a typical services
firm direct investment
portfolio capital
7. Access to advanced technology
Ability to capitalize on product development
, FSU MAN3600 Exam 1
Study online at https://quizlet.com/_hz7qfj
Advantages of Superior financial strength
Multinational Busi- Depth and breadth of management talent
ness Reduce political risk
8. benefits of or Good for job creation
need for interna- Bring in wide range of products and services to a country
tional business at Expand consumer choices
the economy level exert pressure on domestic products to improve
improve standard of living
allows for economies of scale
allows firms to hone their competitive skills abroad
failure to become part of the global market assures a nation of declining
economic influence and a deteriorating standard of living
9. current US trade Trade deficit since 1980s, 43 billion per month
position 800 billion total, worse than any other country.
trade deficit is increasing
major issues: Trade with the Pacific Rim, Japan, and China
Trade with Canada and Mexico
10. costs of interna- Exporting jobs
tional business Wage rates of unskilled workers in advanced countries
Countries - MNE dependent
Loss of control and sovereignty
11. culture Multidimensional
Integrated system of learned behavior patterns that are characteristic of the
members of any given society
12. acculturation The process of adjusting and adopting to a specific culture other than one's
own, one of the keys to success in international operations
13. language
