Afm 131 Module 1; Competing In Global Market

buying products from other countries

the movement of goals/services among nations without political or economic barriers

countries should sell products that the produce effectively and buy from others products that they cannot produce

when a country has a monopoly on producing a specific products or able to produce it effectively

industrial goods & materials, machinery & equipment, energy products, automotive products, agricultural & fishing, forestry, other consumer goods

a nation's ratio of exports to imports

favorable balance of trade; exports exceed imports

unfavorable balance of trade; imports exceed exports

difference b/w money coming into the country (exports) & money leaving the country (imports)

a firm allows a foreign company (licensee) to produce its product in exchange for a fee (a royalty)

an agreement that someone with a good idea for a business sells the rights to use the business name & sell a product or service in a given territory in a certain matter

a foreign country's production of a private-label good to which a domestic country then attaches its brand name or trademark; also called outsourcing

a partnership where 2 or more companies join to undertake a major project

1. shared technology & risk

2. shared marketing & management expertise

3. entry into markets where foreign companies are often not allowed unless goods are produced locally

long-term partnership b/w 2 or more companies established to help each company build competitive market advantages

buying of permanent property & businesses in foreign nations

company owned in a foreign country by the parent company

an organization that manufactures & markets products in many different countries & has multinational stock ownership & multinational management

sociocultural, economic, financial, legal, environmental, and physical

an attitude that one's culture is better than others

value of one's currency compared to another

lowering the value of a nation's currency relative to other currencies

countries bartering for goods for goods or services for services

use of government regulations to limit the import of goods and services

selling products in a foreign country at lower prices than those charged in the producing country

taxes of imports

two kinds: protective and revenue

limit on the number of products in certain categories that a nation can import

complete ban on the import or export of a certain product or the stopping of all trade with a particular country

an agreement that established an international forum for negotiating mutual reductions in trade restrictions

international organization that replaced the GATT & was assigned the duty to mediate trade disputes among nations

international bank that makes short term loans to countries experiencing problems with their balance of trade

organizations of commodity producing countries that are formed to stabilize or increase prices to optimize overall profits in the long run

a regional group of countries that have a common external tariff, no internal tariffs & a coordination of laws to facilitate exchange

agreement that created a free trade agreement among Canada, USA and Mexico

-cultures: values, beliefs, rules, institutions

-manners & beliefs

-issues with global marketing strategy

-not all global opportunities are viable

-no unified currency

-federal & provincial laws/ regulations heavily affect business practices of Canadian businesses globally

-technological constraints

-getting to your customers