Introduction to Globalization

False (B)

International Product Life Cycle, it recognizes that a product can be in different stages in different countries.

<p>Innovators</p> Signup and view all the answers

<p>Introduction = Sales increase gradually with fairly low sales. Growth = Sales rise sharply as more consumers buy the product. Maturity = Sales reach their highest peak and then decrease. Decline = Sales deteriorate as the product approaches its end.</p> Signup and view all the answers

<p>You will pay higher interest rate (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>4.5 years</p> Signup and view all the answers

<p>fixed cost</p> Signup and view all the answers

<p>Risk = Higher borrowing cost with better credit score Fixed costs = Costs that do not change with production levels Variable costs = Costs that vary based on production/utility use Cost per unit = Total cost divided by the number of units produced</p> Signup and view all the answers

<p>Cost per unit will decrease (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>$8.2 (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Competitive pressures in the local market</p> Signup and view all the answers

<p>Liability of Foreignness</p> Signup and view all the answers

<p>Proactive market strategy (C)</p> Signup and view all the answers

<p>It decreases</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>tariffs</p> Signup and view all the answers

<p>Mercantilism (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>To open and facilitate international trade.</p> Signup and view all the answers

<p>dumping</p> Signup and view all the answers

<p>GATT = Agreement to liberalize trade and reduce barriers IMF = Organization promoting international monetary cooperation Trade Barrier = Obstacles that impede trade Comparative Advantage = Ability to produce a good at a lower opportunity cost</p> Signup and view all the answers

<p>Import quotas (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>What is given up to obtain something else.</p> Signup and view all the answers

<p>comparative</p> Signup and view all the answers

<p>Centrally Planned Economy (D)</p> Signup and view all the answers

<p>Promoting physical health (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Values, Aesthetics, Language</p> Signup and view all the answers

<p>unspoken</p> Signup and view all the answers

<p>Values = Ideas about what a group views as good, right, and desirable Aesthetics = Beauty and good taste in the arts and culture Language = Both spoken and unspoken communication forms</p> Signup and view all the answers

<p>Beliefs are a set of assumptions held to be true by a group. (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>It helps to develop an objective understanding.</p> Signup and view all the answers

<p>Customs (C)</p> Signup and view all the answers

<p>rude</p> Signup and view all the answers

The chance of not repaying a loan. Higher risk means you pay less interest; lower risk means higher interest.

Costs that don't change, like rent or property taxes, regardless of production.

Costs that change depending on production, like utilities.

The amount a company spends to make one item.

The amount a company charges for an item.

The idea that computing power doubles while costs halve roughly every 18 months.

Spreading your investments or risks to reduce the chance of a large loss.

The cost that changes with the number of chairs produced, excluding fixed costs like property tax.

The cost that remains constant, regardless of the number of chairs produced, e.g., property tax.

External pressures that motivate companies to expand internationally.

When the supply of a product or service exceeds the demand.

Products whose demand varies significantly with the time of year.

The gap between two cultures, often measured in factors like linguistic, religious, and cultural differences.

The additional costs and risks that firms face when operating in a foreign country compared to domestic firms.

Risk of being treated unfairly or discriminated against in a foreign market due to background.

Additional expenses incurred in conducting international business transactions, including tariffs.

What we see is just our own interpretation, not necessarily objective reality.

Understanding a product's meaning and use within a different culture.

Toys serve different purposes in various cultures, from entertainment to social learning.

We unconsciously judge other cultures based on our own.

Components of a culture that shape its values, aesthetics, and language.

A group's beliefs about what is good, right, and desirable.

A culture's standards of beauty and taste in art, music, and folklore.

The actual words and pronunciation used within a culture.

Nonverbal cues, like facial expressions and gestures, that convey meaning.

Unspoken rules of behaviour that are considered unacceptable within a culture.

An economic policy aimed at enriching a nation by restricting imports and encouraging exports. It strives to create a trade surplus, where exports exceed imports, to accumulate wealth.

The absence of barriers to the free flow of goods and services between countries. It encourages open markets with minimal government intervention.

The ability of a country to produce a good more efficiently than any other country. This means they can produce more of the good with the same resources.

The value of what is given up when making a choice. It's the next best alternative you sacrifice by choosing one option over another.

The ability of a country to produce a good at a lower opportunity cost than another country. Even if a country isn't the most efficient producer overall, it can still specialize in what it's relatively better at.

A multilateral agreement aimed at liberalizing international trade by reducing tariffs and other trade barriers. It was superseded by the WTO in 1995.

Any obstacle that restricts the flow of goods and services between countries, increasing the cost of trading. These can be tariffs, quotas, or non-tariff barriers.

Selling a product in a foreign market below the cost of production or below its domestic price. This is considered an unfair trade practice.

An international organization dedicated to promoting free trade by setting rules for global commerce, settling trade disputes, and helping developing countries participate in the global economy.

A set of 10 economic policy recommendations promoted by the IMF and World Bank focusing on fiscal discipline, market liberalization, and privatization. It aimed to guide developing countries toward a market-oriented economy.

A model that tracks the stages a product goes through from introduction to decline, impacting sales strategies.

The initial stage of a product's life cycle, characterized by low sales and gradual growth.

The stage where product sales increase rapidly as consumers recognize its benefits.

The stage where sales peak and then plateau as the product reaches wide market penetration.

The final stage where product sales decline as the product loses its appeal or faces competition.