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BUSMHR 2000 Exam 1

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• Globalization - answer-The trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world. Global Institutions - answer-(1) -Help manage, regulate, and police the global marketplace. -Promote the establishment of multinational t...

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  • September 19, 2024
  • 10
  • 2024/2025
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BUSMHR 2000 Exam 1
• Globalization - answer-✔The trend toward increased cultural and economic
connectedness between people, businesses, and organizations throughout the
world.


Global Institutions - answer-✔(1) -Help manage, regulate, and police the global
marketplace.
-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).


WTO - answer-✔The World Trade Organization - an international body that
enforces agreements that reduce barriers to international trade; successor to the
GATT


IMF - answer-✔International Monetary Fund//a United Nations agency to promote
trade by increasing the exchange stability of the major currencies


International Business - answer-✔The business activites necessary for creating,
shipping, and selling goods and services across national borders.


International firm - answer-✔Any firm, regardless of size, that is engaged in
international business


MNE - answer-✔Multinational Enterprise. a global firm that has corporate units
located in foreign countries.

, Market motives - answer-✔the motivation of a company to seize through trade
and/or investment or stand it's ground in the face of competitive international
business


Economic Motives - answer-✔the motivation to increase return through higher
revenues or lower costs through international raw materials, natural resources, a
cheap labor supply for manufacturing goods


Strategic Motives - answer-✔the motivations leading firms overseas to capitalize
on distinctive resources and capabilities developed at home. These can include
technologies and Economies of Scale.


Economies of Scale - answer-✔as a company produces larger numbers of a
particular product, the cost of each of these products goes down


International versus Domestic Business - answer-✔the variations in business seen
locally versus overseas including environmental dynamics and operational nature


Environmental Dynamics - answer-✔Currency, inflation, interest rates, accounting
practices, cultures, social customs, laws, political stability of another country


Operational Nature - answer-✔communication, coordination, motivation,
differences in organizational principles and management philosophies, made
increasingly more difficult in an international setting


risk - answer-✔the unpredictability of operational and financial outcomes

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