Exam 3 Study Guide

Exam 3 Study Guide - Exam 3 Study Guide (Chapters 8, 9, 10)...

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Exam 3 Study Guide (Chapters 8, 9, 10) What is global business- the buying and selling of goods and services by people from different countries. Direct foreign investment- A method of investment in which a company builds a new business or buys an existing business in a foreign country. Tariff- A direct tax on imported goods. Protectionism- A government’s use of trade barriers to shield domestic companies and their workers from foreign competition. GATT- A worldwide trade agreement that reduced and eliminates tariffs, limited government subsidies, and established protections for intellectual property. Why do consumers in the United States get much more for their money Because the free trade agreements causes more competition which means cheaper prices. global consistency- When a multinational company has offices, manufacturing plants, and countries and runs them all using the same rules, guidelines, policies and procedures. local adaptation- When a multinational company modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies. Direct foreign investment- A method of investment in which a company builds a new business or buys an existing business in a foreign country. Franchising- A collection of networked firms in which the manufacturer or marketerof a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee. Licensing- An agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor’s product, sell its service, or use its brand name in a specified foreign market. Exporting-
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Exam 3 Study Guide - Exam 3 Study Guide (Chapters 8, 9, 10)...

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