D270 Midterm Garcia Exam Questions With
Verified Answers
Offshoring - Answers✔the relocation of business processes and services to a lower-cost foreign
location particularly white-collar, technical, professional, and clerical services
Outsourcing - Answers✔A decision by a corporation to turn over much of the responsibility for
production to independent suppliers.
Turnkey Operation - Answers✔A company sets a contract with a company abroad, trains local
personnel, and then turns the key over to local management for a fee. allows host country to use
their trademark, brand
management contract - Answers✔home country hires a host country to hire, train, manage
workers for their work and pays them a fee for dealing with operations overseas. less risk, less
costly, less complex
Foreign Direct Investment - Answers✔investor takes controlling investment in foreign country
joint venture - Answers✔an agreement between two or more companies to share an FDI
change agent - Answers✔someone who is a catalyst in helping organizations to deal with old
problems in new ways. can also be brands changing culture/brands in a country
opinion leaders - Answers✔individuals who exert direct or indirect social influence over others.
influencers
Reshoring - Answers✔moves jobs back from foreign to domestic locations
Microprocessor - Answers✔The central processing unit that is generally made from a single
integrated circuit.
Agglomeration - Answers✔Clumping together of industries for mutual advantage.
licensing agreement - Answers✔an agreement in which one firm gives another firm the right to
produce and market its product in a specific country or region in return for royalties
1
ALL RIGHTS RESERVED.
Royalties - Answers✔A percentage of actual sales that a licensee pays to a licensor, usually
anywhere from 5 to 15 percent
prestige - Answers✔a high standing achieved through success or influence or wealth etc.
Acquired Group Membership - Answers✔Defined by choice (political, professional, religion)
civil strife - Answers✔Civil War
most highly globalized countries are - Answers✔small, high per capita income, lots of imports
Born Global Company - Answers✔Founded as international company ex. soundcloud
Criticism of Globalization - Answers✔1. Threats to national sovereignty
2. Environmental stress
3. Growing income inequality and personal stress
4. Local businesses hurt
5.Poor working conditions
global stars - Answers✔ex. Cristiano Ronaldo, make so so much money, way more than the
average pro player in less popular sports
Pros of Globalization - Answers✔-increases profits by having more people to sell to
-can use foreign resources which can be cheaper/better
-risks are reduced (when 1 country is doing poorly, another might be ok)
-increases competition
-middle class increased
portfolio investment - Answers✔a non-controlling financial interest in another entity
collaborative arrangements - Answers✔Companies work together—in joint ventures, licensing
agreements, management contracts, minority ownership, and long-term contractual arrangements
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