WGU C211 focus questions from chapters, C211 Global

WGU C211 focus questions from chapters, C211 Global Economics for Managers Leave the first rating Students also studied Terms in this set (456) Save

Global Car Brands by Country: Key ...

65 terms jun_1in6Preview Global Business Semester Exam Rev...32 terms The_AaravPPreview International Business Final Exam R...130 terms gabfigueroa45 Preview int mkt 95 terms lyds Globalization can be viewed as:1. a new force sweeping through the world in recent times.

• a long-run historical evolution since the dawn of human history.
• a pendulum that swings from one extreme to another from time to time.

Which are the three views of globalization?A recent force, a long-running evolution, and a pendulum An import quota is:restriction on the quantity of imports that can be brought into a country.Examples of nontariff trade barrier (NTB)Import quotas Local content requirements Subsidies Free trade is defined as:The idea that market forces should determine how much to trade with little or no government intervention.political argument against free tradeConsumer protection National security Environmental and social responsibility To express its opposition to the political regime in Myanmar, the United States has banned the importation of jade and other gemstones from that country. This is an example of a trade embargo

The primary political views on FDI are:Free market and pragmatic nationalism

Firms can increase their chances of success with FDI by 1. assessing whether FDI is justified, in light of other options.

• understanding that political realities either facilitate or constrain FDI.
• leveraging OLI advantages in a way that is valuable, unique, and hard to imitate

by rival firms.How do firms create value when engaging rivals 1. Secure patents on key products.

• All of these
• Launch products in multiple markets.
• Hold a dominant position in key markets.

The theory of comparative advantage was advocated by David Ricardo The modern trade theories include the following 1. Theory of product life cycle

• Theory of national competitive advantage of industries
• Theory of strategic trade

The theory of mercantilismviews international trade as a zero-sum game.According to the theory of absolute advantage, under free trade each nation gains by specializing in economic activities in which a nation has absolute advantage comparative advantagethe ability to produce a good at a lower opportunity cost than another producer Absolute AdvantageThe economic advantage one nation enjoys that is absolutely superior to other nations.Strategic trade theoryA theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success.Product life cycle theoryA theory that accounts for changes in the patterns of trade over time by focusing on product life cycles.The three modern theories of international trade 1. product life cycle

• strategic trade
• national competitive advantage of industries.

Base of the pyramid (BOP)Economies where people make less than $2,000 per capita per year.BRICABrazil, Russia, India, and China.Emerging economiesterm that has gradually replaced the term "developing countries" since the 1990s.Emerging marketsA term that is often used interchangeably with "emerging economies." Expatriate managerA manager who works abroad, or "expat" for short.Foreign direct investment (FDI)Investment in, controlling, and managing value-added activities in other countries.Global BusinessBusiness around the globe.

GlobalizationThe close integration of countries and peoples of the world.Gross domestic product (GDP)The sum of value added by resident firms, households, and governments operating in an economy.Gross national income (GNI)GDP plus income from non-resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP.Gross national product (GNP)GDP plus income from non-resident sources abroad Group of 20 (G-20)The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems.International business (IB)(1) A business (or firm) that engages in international (cross-border) economic activities and/or (2) the action of doing business abroad.International premiumA significant pay raise when working overseas.Liability of foreignnessThe inherent disadvantage that foreign firms experience in host countries because of their non-native status.Multinational enterprise (MNE)A firm that engages in foreign direct investment (FDI).Nongovernmental organization (NGO)An organization that is not affiliated with governments.Purchasing power parity (PPP)A conversion that determines the equivalent amount of goods and services that different currencies can purchase.Reverse innovationAn innovation that is adopted first in emerging economies and is then diffused around the world.Risk managementThe identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events.Scenario planningA technique to prepare and plan for multiple scenarios (either high or low risk).SemiglobalizationA perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely.TriadNorth America, Western Europe, and Japan.Purchasing power parity (PPP)adjustment made to the GDP to reflect differences in the cost of living The bottom billionConcentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees Why study global business?

Institution-based viewA core perspective. Success and failure of firms are constrained by institutions Formal rulesrequirements that treat domestic and foreign firms as equals enhance the potential odds for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants Informal rulescultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe Resource-based viewA core perspective. Success and failure of firms is determined by their environment New force in recent times, a long-running historical evolution, a pendulum swinging between extremes What are the three views of globalization?"Four Tigers"Hong Kong, Singapore, South Korea and Taiwan Absolute advantageThe economic advantage one nation enjoys that is absolutely superior to other nations.Administrative policyBureaucratic rules that make it harder to import foreign goods.antidumping dutyTariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic firms out of business).Balance of TradeThe aggregation of importing and exporting that leads to the country-level trade surplus or deficit.Classical trade theoriesThe major theories of international trade that were advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage.Comparative advantageRelative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations.Deadweight costNet losses that occur in an economy as a result of tariffs.ExportSelling abroad.Factor endowmentThe extent to which different countries possess various factors of production such as labor, land, and technology.Factor endowment theoryA theory that suggests that nations will develop comparative advantages based on their locally abundant factors.Heckscher-Ohlin theoryAnother name for factor endowment theory First-mover advantageAdvantage that first movers enjoy and do not share with late entrants.