BusinessInActionChapter3

The increasing integration and interdependence of national economies around the world.

Savings from buying parts and materials, manufacturing, or marketing in large quantities.

Total value of the products a nation exports minus the total value of the products it imports, over some period of time.

A favorable trade balance created when a country exports more than it imports.

An unfavorable trade balance created when a country imports more than it exports.

The sum of all payments one nation receives from other nations minus the sum of all payments it makes to other nation, over some specified period of time.

The rate at which the money of one country is traded for the money of another.

International trade unencumbered by restrictive measures.

Government policies aimed at shielding a country's industries from foreign competition.

Taxes levied on imports.

Limits placed on the quantity of imports a nation will allow for a specific product.

A form of financial assistance in which producers receive enough money from the government to allow them to lower their prices in order to compete more effectively in the global market.

Charging less than the actual cost or less than the homecountry price for goods sold in other countries.

Organizations of nations that remove barriers to trade among their members and that establish uniform barriers to trade with nonmember nations.

A shared system of symbols, beliefs, attitudes, values, expectations, and norms for behavior.

Assigning a wide range of generalized attributes, which are often superficial or even false, to an individual based on his or her membership in a particular culture or social group.

Judging all other groups according to the standards, behaviors, and customs of one's own group.

Purchasing goods or services from another country and bringing them into one's own country.

Selling and shipping goods or services to another country.

Agreement to produce and market another company's product in exchange for a royalty or fee.

Investment of money by foreign companies in domestic business enterprises.

Companies with operations in more than one country.

A decentralized approach to interational expansion in which a company creates highly independent operating units in each new country.

A highly centralized approach to international expansion, with headquarters in the home country making all major decisions.

A hybrid approach that attempts to reap the benefits of international scale while being responsive to local market dnamics.

A total ban on trade with a particular nation (a sanction) or of a particular product.