Exam2classNOTES - Chap 8 Global business The buying and selling of goods and services by ppl from different countries Multinational corporation A

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Chap 8 Global business The buying and selling of goods and services by ppl from different countries. Multinational corporation A corporation that owns businesses in two or more countries. Direct foreign investments A method of investments in which a company builds a new business or buys an existing business in a foreign country. Trade barriers Makes it more expensive or difficult(or sometimes impossible) for consumers to buy or consume imported goods. Protectionism The use of trade barriers to protect local companies and their workers from foreign competition Global consistency When a multinational company has office / plants in different countries, and uses the same rules, guidelines, policies, and procedure Local adaptation When a multinational company modifies its rules, guidelines, policies, and procedures to adapt to difference in foreign customers, government, and regulatory agencies. US foreign investment abroad United kingdom has the most foreign investment in the US One of the reason countries invest oversees is to get around trade barriers One of the reasons countries put up trade barriers is because they fear other countries Tariff A tariff is a direct tax on imported goods Non tariff barriers Nontax methods of increasing the cost or reducing the volume of imported goods - quotas - specific limits on the number or volume of imported products. Voluntary export restraints -like a quota, limit’s the amt of products that can be imported annually. Govt import standards - estab to protect the help and safety of citizens. Govt subsidies - Gov loans, grants, and tax deferments given to domestic companies to protect them from foreign competition Customs/ valuation/ classification A classification assigned to imported products by gov officials that affects the size of a tariff and the imposition of import goods Nafta -to eliminate trade barriers btw US, Canda, and Mexico The most common trade barrier is a tariff Doha round Prob is agricultural sustidies
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GATT The idea was to reduce trade barriers and increase trade worldwide - made it easier and cheaper for consumers in all countries to buy foreign products Tariffs were cut 40 percent on avg Tariff were eliminated in 10 specifc countries WTO Administers WTO trade agreements Purpose is to eliminate trade barriers and promote free trade Regional trading zones Maastricht treaty of Europe Nafta Eliminates most tariffs and barriers Agreement btw mexico US, and Canada Liberalizes trade among these three nations FTAA Free trade of the americas Propse agreement to establish a free trade zone throughout the western hemisphere ASEAN association of southeast Asian Nations Trade agreement btw Brunei Darussalam, Cambodia, Indonesia, loas, Malaysia, Myanmar, the philipenes, Singapore, Thailand and Vietnam. APEC
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This note was uploaded on 09/08/2010 for the course BUS 160 at San Jose State University .

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Exam2classNOTES - Chap 8 Global business The buying and selling of goods and services by ppl from different countries Multinational corporation A

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