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management
chapter 2
Question | Answer |
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define global shift: | A term used to characterize the effects of change in the competitive landscape prompted by worldwide competition. This means the international business environment is changing faster than ever. |
what is General Agreement on Tariffs and Trade? | it is a treaty signed by 120 nations to lower trade barriers for manufactured goods and services. It is designed to protect our own people. |
What is the North American Free Trade Act ( NAFTA)? | it eliminated tariff and and most nontariff barriers and allows for free flow of agricultural products between the U.S and Mexico. it also increases U.S employment by keeping jobs here. |
There are four major factors affecting international business: | General business environment, legal systems, economic environment, and culture. |
there are three types of legal systems when doing international business: | common law ( precedents based on past court decision) civil law ( rely on a comprehensive set of rules that form part of a highly structured code) and Muslim law ( religious beliefs) |
To succeed international business, Hofstede uses 5 dimensions to summarize different cultures: | power distance, individualism, uncertainty avoidance, masculinity/femininity, and long term/short term orientation. |
Firms who want to expand to another country face 3 key decisions: | which country to enter, when to enter, and the scale of involvement (can you make money) |
there are 7 modes of entry into another country: | exporting, turnkey projects, licensing, franchising, joint ventures ( most common), wholly owned subsidiaries, strategic alliances. |
Three basic approaches to managing foreign subsidiaries: | ethnocentric approach, poly-centric approach, and the geocentric approach |