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Unformatted text preview: Bolded Term Descriptions Chapter 1 • International business includes business transactions between parties from more than one country • Just-in-time (JIT) systems are Japanese pioneered inventory management techniques where suppliers are expected to deliver necessary inputs just as they are needed • Exporting is the selling of products made in one’s own country for use or resale in other countries • Importing is the buying of products made in other countries for use or resale in one’s own country • Merchandise exports and imports (British: visible trade) is the trade in goods or tangible products such as clothing, computers, raw materials • Service exports and imports are trade in services or intangible products such as banking, travel, and accounting activities (British: invisible trade) • International investments are capital supplied by residents of one country to residents of another o Foreign direct investments are investments made for the purpose of actively controlling property assets or companies located in host countries o Foreign portfolio investments are purchases of foreign financial assets (stocks, bonds, CDs) for purpose other than control • Home country is where parent company’s headquarters are located • Host country is any other country in which company operates • International licensing is a contractual arrangement in which a firm in one country licenses the use of its intellectual property (patents, trademarks, brand names, copyrights, trade secrets) to a firm in a second country in return for a royalty payment • International franchising is a specialized form of international licensing where one country (franchisor) authorizes a firm in a second country (franchisee) to utilize its operation systems as well as its brand names, trademarks, and logos in return for royalty payments • International management contract is 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 • International business is any organization that engages in cross-border commercial transactions with individuals, private firms, an public sector organizations • Multinational corporation (MNC) is used to identify firms that have extensive involvement in international business o Firm that engages in foreign direct investment and owns or controls value-adding activities in more than one country o Also called multinational enterprises (MNEs) or multinational organizations (MNOs) • Globalization is 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 before • Core competency is a distinctive strength or advantage that is central to a firm’s operations • Emerging markets are those countries whose recent growth or prospects for future growth exceed that of traditional markets...
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This note was uploaded on 02/07/2011 for the course COMM 3845 taught by Professor Wilkerson during the Fall '10 term at UVA.
- Fall '10