Introduction The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing
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UNIT – I INTERNATIONAL BUSINESS – AN OVERVIEW Content Outline Introduction Definition and meaning of international business Scope of international business Special difficulties in international business Benefits of international business Understanding of international business environment Framework for analyzing the international business environment Summary Review Questions INTRODUCTION One of the most dramatic and significant world trends in the past
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CHAPTER 1 SUGGESTED ANSWERS TO CHAPTER 1 QUESTIONS 1.a. What are the various categories of multinational firms? ANSWER. Raw materials seekers, market seekers, and cost minimizers. b. What is the motivation for international expansion of firms within each category? ANSWER. The raw materials seekers go abroad to exploit the raw materials that can be found there. It just happens that nature didn't place all natural resources domestically. Market seekers go overseas to produce and sell in foreign
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Free Trade Free trade may also be called International Trade. Free Trade occurs when goods and services are traded between countries without the use of import controls. For most of the late twentieth century, the prevailing wisdom has been that free trade can lead to improvements in economic welfare in the global economy. However this has not prevented regular trade disputes between countries - often when one country feels that unfair trade practices have caused the benefits from trade to become
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including tax incentives, subsidies, and export assistance. Governments also discourage imports with a combination of tariffs and nontariff barriers. A quota is one example of a nontariff barrier. Export-related policy issues include the status of foreign sales corporations (FSCs) in the United States, Europe’s Common Agricultural Policy (CAP), and subsidies. Governments establish free trade zones and special economic zones to encourage investment. The Harmonized Tariff System (HTS) has been adopted
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Base of the pyramid (BOP) Economies where people make less than $2,000 per capita per year. BRICA Brazil, Russia, India, and China. Emerging economies term that has gradually replaced the term "developing countries" since the 1990s. Emerging markets A term that is often used interchangeably with "emerging economies." Expatriate manager A manager who works abroad, or "expat" for short. Foreign direct investment (FDI) Investment in
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|Terminology |Definition | |Absolute Advantage |Absolute Advantage occurs when one country can produce more of a good or service with the same or resources | | |and more cheaply than another country | |Absolute poverty |Absolute poverty describes
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Economics 2: The World Economy Unit Student Guide Scottish Qualifications Authority Contents 1 2 Introduction to the Scottish Qualifications Authority Introduction to the Unit 2.1 2.2 2.3 2.4 2.5 2.6 3 What is the Purpose of this Unit? What are the Outcomes of this Unit? What do I Need to be Able to do in Order to Achieve this Unit? Approximate Study Time for This Unit Equipment/Material Required for this Unit Symbols Used in this Unit 1 2 2 2 2 3 3 4 5 5 6 7 7 11 18 24 31 37 41 51 60 68 75
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Macro Econoshit Chap 4 Terms | Definitions | Prosperity | The capacity/ availability to satisfy needs by means of products or services | Production | The values added to the process of goods from natural resources. | Production factors | Resources used for production 1. Labor 2. Natural resources 3. Capital | Gross Domestic Products (GDP) | Total production of goods and services within the borders of a country | Comparison of GDP per capita3 steps | 1. Calculate the GDP per
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BALANCE OF PAYMENTS: Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers. The Balance of payments accounts summarize international transactions for a specific period, usually a year, and are prepared in a single currency, typically the domestic currency for the country concerned. Sources
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