INTB 3350 Test 1 - Ch. 1: An Overview of International...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch. 1: An Overview of International Business International Business – Business transactions between parties from more than one country. Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public sector organizations. Just-In-Time Systems – Suppliers are expected to deliver necessary inputs just as they are needed. Exporting – The selling of products made in one’s own country for use or resale in other countries. Importing – The buying of products made in other countries for use or resale in one’s own country. Merchandise Exports and Imports – Group of activities is trade in goods – tangible products such as clothing, computers, and raw materials. Service Exports and Imports – Trade in service – intangible products such as banking, travel, and accounting activities. International Investments – Capital supplied by residents of one country to residents of another. Foreign Direct Investments (FDI) – Investments made for the purpose of actively controlling property, assets, or companies located in host countries. Home Country – The country in which the parent company’s headquarters is located in; any other country in which the company operates is known as a host country. Foreign Portfolio Investments (FPI) – Purchases of foreign financial assets (stocks, bonds, and certificates of deposits) for a purpose other than control. Licensing – A contractual arrangement in which a firm in one country licenses the use of its intellectual property (patents, trademarks, brand names, copyrights, or trade secrets) to a firm in a second country in return for a royalty payment. Franchising – A specialized form of licensing. Management Contract – An arrangement wherein a firm in one country agrees to operate facilities or provide other management services to a firm in another country for an agreed-upon fee. Multinational Corporation (MNC) – Used to identify firms that have extensive involvement in international business. “That engages in foreign direct investment and owns or controls value-adding activities in more than one country.” Globalization – The inexorable integration of markets, nation-states, and technologies…in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before. Core Competency – A distinctive strength or advantage that is central to a firm’s operations. Ch. 2: Global Marketplaces and Business Centers Invoicing Currency – The currency in which the sale of goods and services is denominated Flight Capital – Money sent out of a politically or economically unstable country to one perceived as a safe haven. Gross Domestic Product (GDP) – The total market value of all goods and services produced in a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/27/2008 for the course INTB 3350 taught by Professor Prudan during the Spring '08 term at University of Houston.

Page1 / 5

INTB 3350 Test 1 - Ch. 1: An Overview of International...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online