Final Review

Final Review - Chapter 8: Global Management Global...

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Chapter 8: Global Management Global Business, Trade Rules, Trade Agreements global business buying/ selling of goods/ services by people from different countries multinational corporation owns businesses in 2 or more countries direct foreign investment co builds new business/ buys existing business in a foreign country trade barriers gov-imposed regs that increase cost/ restrict number of imported goods protectionism gov’s use of trade barriers to shield domestic cos . their workers from foreign competition tariff direct tax on imported goods nontariff barriers nontax methods of increasing cost/ reducing volume of imported goods quota limit on number/ volume of imported products voluntary export restraints voluntarily imposed limits on no of products exported to a country gov import standard est to protect health/ safety of citizens ; in reality used to restrict imports subsidies gov loans, grants, tax deferments given to domestic cos to protect from foreign compet customs classification assigned to imported products by gov affects size of a tariff, imposition of import quotas Trade Agreements General Agreement on Tariffs and Trade (GATT) worldwide trade agreement: reduced/ eliminated tariffs, limited gov subsidies, established protections for intellectual property World Trade Organization (WTO) successor to GATT: only intl org dealing w/ global rules of trade b/w nations; main function: ensure that trade flows as smoothly, predictably, freely as possible regional trading zones tariff/ nontariff barriers on trade b/w countries are reduced or eliminated Maastricht Treaty of Europe regional trade agreement b/w most European countries NAFTA (N Am Free Trade Agreement) regional trade agreement b/w US, Canada, Mexico CAFTA (Cen Am Free Trade Agreement) regional trade agreement b/w Costa Rica, DR, El Salvador, Guatemala, Honduras, Nicaragua, US FTAA (Free Trade Area of the Ams) regional trade agreement that, when signed, will create a regional trading zone encompassing 34 countries in N and S Am APEC (Asia-Pacific Economic Cooperation) regional trade agreement b/w Australia, Canada, Chile, the People’s Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, US, all members of ASEAN- except Cambodia, Laos, Myanma ASEAN (Association of SE Asian Nations) regional trade agreement b/w Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam global consistency when a multinational co has offices, manufacturing plants, distribution facilities in different countries and runs them all using the same rules, guidelines, policies, procedures local adaptation when a multinational co modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, govs, and regulatory agencies Forms for Global Business exporting selling domestically produced products to customers in foreign countries cooperative contract foreign bus owner pays co
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This note was uploaded on 05/18/2008 for the course MGT 20200 taught by Professor Gaglio during the Spring '08 term at Notre Dame.

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Final Review - Chapter 8: Global Management Global...

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