Test 2 notes - Chapter 3 Globalization is the worldwide...

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Chapter 3 Globalization – is the worldwide interdependence of resoure supplies, product markets, and business competition European Union – a political and economic alliance of European countries NAFTA – North American Free Trade Agreement linking Canada, The US and Mexico in a regional economic alliance Maquiladoras – foreign manufacturing plants that operate in Mexico with special privileges International Business – conducts commercial transactions across national boundaries. Global Sourcing – materials or components are purchased abroad for assembly at home into a final product Exporting – local products are sold abroad Importing – the process of acquiring products abroad and selling them in domestic markets. Licensing Agreements – occurs when a firm pays a fee for the rights to meke or sell another company's product Franchising – provides the complete “package” of support needed to open a particular business. Joint venture – establishes operations in a foreign country through joint ownership with local partners. Wholly owned subsidiary – local operation completely owned by a foreign firm. Multinational corporation (MNC) – is a business firm with extensive international operations in more than one foreign country Transnational corporation – is an MNC that operates worldwide on a border less basis. Sweatshop – employs workers at very low wages and in poor working conditions. Child Labor – employment of children for work normally performed by adults. Culture – a shared set of beliefs, values, and patterns of behavior common to a group of people. Ethnocentrism – the tendency to consider one's culture as superior to all others. Culture Shock – the confusion and discomfort a person experiences when in an unfamiliar culture. Low-context cultures – emphasize words to communicate by speaking and writing. High-context cultures – are less specific with works(?) and use of body language, relationships, and other context to communicate. Monochronic culture – people tend to do one thing at a time. Polychronic culture – time is used to accomplish many different things at once. Comparative management – the study of how management pracices differ systematically from one country and/or culture to the next.
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Summary – Chapter 3 What are the Processes of Globalization? The processes of globalization are making the diverse countries of the world increasingly interdependent regarding resource supplies, product markets, and business competition. The global economy is now strongly influenced by regional developments that involve growing economic integration in Europe, the Americas, and Asia, and the economic emergence of Africa What is the environment of International Business? Five forms of international business are global sourcing, exporting and importing, licensing and
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Test 2 notes - Chapter 3 Globalization is the worldwide...

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