International Trade NLM Preliminary Reviewer PDF

INTERNATIONAL TRADE NLM PRELIM REVIEWER GLOBALIZATION (Refer to handout 01 page 4) - Growing interdependence of the world They must choose the appropriate mode for economies, culture and population enterin...

INTERNATIONAL TRADE NLM PRELIM REVIEWER GLOBALIZATION (Refer to handout 01 page 4) - Growing interdependence of the world They must choose the appropriate mode for economies, culture and population entering a particular foreign country. brought by cross -border trade in good - Is it best to export its product to the and services, technology and flows of foreign country? investment people and information. - Should the firm allow a local company to produce its product under license in that - International integration of trading/mfg. country? of goods service capital etc. - Should the firm enter into a joint venture with a local firm to produce its product in that country? GLOBALIZATION OF MARKETS - Or should the firm set up a wholly- - Merging of separate national markets owned subsidiary to serve the market in into one huge global marketplace that country? EXPORTING GLOBALIZATION OF PRODUCTION - sale of products and services in foreign countries that are sourced or made in - sourcing of goods and services from the home country (labas ng goods) locations around the globe to take advantage of national differences in the IMPORTING cost and quality of factors of production - buying goods and services from foreign sources and bringing them back into the home country (pagpasok ng goods) GLOCALIZATION EXPORTING/IMPORTING - universalization and particularization applied to international trade to adapt - Selling products and services to foreign countries do business markets or buying foreign products services from foreign country. (ma’am - foregoing differences require companies norma note) to customize marketing strategies, FRANCHISING product feature, and operating practices - marketing method in which the owner of a product or service, known as the - marketing strategy adopted for a "franchisor," offers the right to operate product or service that is developed and and manage his product and service to distributed globally, but also adopted to others, the "franchisees," in return for a accommodate the user or consumer in fee and ongoing royalty payments. local market (google based) - Contractual arrangement where the franchisor permits the franchisee to the business model/brand name to conduct  INTERNATIONAL TRADE NLM PRELIM REVIEWER a business as independent branch of - forming a (foreign) corporation in a franchisor (ma’am norma) foreign country , either wholly owned by the domestic parent co. or majority- LICENSING owned by the parents domestic co. - business agreement involving two LABOR IMMIGRATION companies: one gives the other special permissions, such as using patents or - residents of one country go to another copyrights, in exchange for payment. country to work like OFW’s (google based) FOREIGN DIRECT INVESTMENT - contractual arrangement where the - occurs when a firm invests resources in licensing sells the right to use intellectual business activities outside its home property or manufacture product to the country license in exchange of royalty. (ma’am norma note) FOREIGN INVESTING JOINT VENTURE - when a domestic investor decides to purchase ownership of an asset in a - a combination of two or more parties foreign country. It involves cash flows that seek the development of a single moving enterprise or project for profit, sharing the risks associated with its GATT development. - forerunner of the WTO, this treaty signed in 1974 by 23 countries, - Joint undertaking by 2 or more parties minimizing barriers to international retain their distinct identities agreeing to trade by eliminating or reducing quotas pool their resources for the purpose of ,tariffs and subsidies accomplishing a specific task/prospect (ma’am norma) UN ROYALTY - international body now totaling 193 countries committed to preserving - certain % of the sales is the product of peace among nations promoting higher intellectual property (ma’am norms) standards of living, full employment, ESTABLISHING A BRANCH WTO - maintaining an office in the foreign - international body set up to police the country (ma’am norms) world of international trade ensuring INTERNATIONAL INVESTING that the member of nations adhere to treaties signed - buying global financial instruments like stocks and bonds as part of an IMF investment portfolio.(ma’am Norms) - international body set up to maintain ESTABLISHING A SUBSIDIARY order in the international monetary system; lender of last resort  INTERNATIONAL TRADE NLM PRELIM REVIEWER WB which the laws are enforced and through which redress for grievances is obtained - international body set up to promote economic development by proving low - ECONOMIC SYSTEM interest loans to cash stripped nations - market, command and mixed economy URUGUAY ROUND - methods and principles by which a country or region allocates resources - reduced trade barriers; extended GATT and distributes goods and services. They to cover services as well as determine how economic decisions are manufactured goods; provided made and how economic activity is enhanced protection for patents, organized. trademarks, and copyrights; and established the WTO to police the TOTALITARIANISM international trading system - political repression is widespread, free FREE TRADE and fair elections are lacking, media are heavily censored, basic civil liberties are - policy by which government does not denied, and those who question the discriminate against imports or interfere right of the rulers to rule find themselves with exports by applying tariffs or imprisoned or worse. subsidies DEMOCRACY TECHNOLOGICAL CHANGE - allow citizens to express their political - change that involves changes in preferences, has constraints on the communication, including the internet power of the executive, and provides a and changes in transportation etc. guarantee of civil liberties. TRADE BARRIERS INDIVIDUALISM - restrictions in trade, like restrictions on - opposite of collectivism emphasizing imports and exports individual freedom INT’L. DIVERSITY COLLECTIVISM - greater uniformity replaces diversity. - stresses the primacy of collective goals - Aristotle argued that individual diversity over individual goals. and private ownership are desirable. SOCIALISM POLITICAL SYSTEM - state ownership of the basic means of - shapes its economic and legal systems production, distribution, and exchange - it means the system of government in a nation. COMMUNISM LEGAL SYSTEM - theoretical classes stateless and moneyless society according to Marx, - refers to the rules, or laws, that regulate sociopolitical, philosophical and behavior along with the processes by ecological ideology  INTERNATIONAL TRADE NLM PRELIM REVIEWER PLATO signaled to producers through the price system. - the Greek philosopher that espoused to COLLECTIVISM PRICE ARISTOTLE - Production is determined by the interaction of supply and demand and - Greek philosopher who was the signaled to producers through the price proponent of INDIVIDUALISM system KARL MARX FREEDOM AND SELF-EXPRESSION - German-born philosopher, political - Individualism is built on two central theorist, economist, historian, principles- the first one is emphasis on sociologist and journalist who advocated individual FREEDOM and SELF- SOCIALISM EXPRESSION SOCIAL DEMOCRATS PERFECT COMPETITION (original word is - committed themselves to achieving competition lang but here ‘yung note ni maam) socialism by democratic means, turning - Many buyers and many sellers their backs on violent revolution and homogenous product free entry exist dictatorship COMMAND ECONOMY PSEUDO-DEMOCRACY - All productive activities are government- - tactical liberalization, relatively owned; the govt determined the institutionalized ruling party quantity to be produced and the prices monopolizes the political arena using at which they are sold coercion, patronage, and media control; lies between pure democracy and MIXED ECONOMY totalitarianism - can be found between markets and MONOPOLY command economies. - Certain sectors of the economy are left - single seller, many buyers to private ownership and free market MONOPSONY mechanisms, while other sectors have significant state ownership and - one buyer, many sellers government planning MARKET ECONOMY COMMON LAW - all productive activities are private- - Based on tradition with no written owned; production is determined by the constitutions , but judicial decisions are interaction of supply and demand binding SUPPLY AND DEMAND CIVIL LAW - Production is determined by the - Codified system of law like corporate interaction of supply and demand and law, administrative law , constitutional law  INTERNATIONAL TRADE NLM PRELIM REVIEWER THEOCRATIC LAW - carries over a generation to the next generation; - Law based on religious teaching - generally universal but variable; and - involves not just inequality but also beliefs VALUES CASTE SYSTEM - bedrock of a culture - Society’s attitude towards individual - closed system of stratification in which freedom, democracy, truth, justice, social position is determined by the honesty, loyalty, social family into which a person is born, and change in that position is usually not NORMS possible during an individual’s lifetime. - social rules that govern people’s actions CLASS SYSTEM toward one another - less rigid form of social stratification in MORES which social mobility is possible - norms that are more widely observed, - open stratification in which the position have greater moral significance than a person has by birth can be changed other norms, and are central to the through his/her own achievements or functioning of a society and to its social luck life. ETHICS - In many societies, certain mores are so drastic that they have been enacted into - the discipline concerned with what law is morally good and bad and morally right and wrong. FOLKWAYS MAHATMA GANDHI - routine conventions of everyday life - social conventions that dealwith things - the famous Indian nationalist and like appropriate dress code in a spiritual leader, was certainly the particular situation, good social embodiment of Hindu asceticism. manners, eating with correct utensils, CONFUCIUS neighborly behavior, and so on - violate folkways may be thought of as - K’ung-Fu-tzu, more generally known as eccentric or ill-mannered Confucius - Confucianism teaches the importance of CULTURE attaining personal salvation through - customary values, beliefs social forms right action. and material traits of a racial religion or STRAW MEN FALLACY social group;way of life - misrepresentation of an opponent's SOCIAL STRATIFICATION (principles) position or a competitor's product - Social stratification is trait of society, not to tout one's own argument or product a reflection of individual differences; as superior. This fallacy occurs when the weakest version of an argument is  INTERNATIONAL TRADE NLM PRELIM REVIEWER attacked while stronger ones are and expressed in right behaviour by ignored. humans, including adherence to the - offer inappropriate guidelines for ethical social order. decision making in a multinational - In buddhism, the nature of reality enterprise. regarded as the universal truth taught by buddha. Buddhism and Hinduism agree in karma, dharma and reincarnation but buddhism rejecta the priest of Hinduism, the formal rituals and caste system ORGANIZATIONAL CULTURE SIDDHARTHA GAUTAMA - set of values, beliefs, attitudes, systems, and rules that outline and - Achived nirvana but decided to remain influence employee behavior within an on earth to teach his followers how they organization. can also achievied it. - BUDDHISM CULTURAL RELATIVISM Nirvana - regarding and valuing the practices of a culture from the point of view of that - State of enlightenment to free oneself culture and to avoid making hasty from suffering judgments. - State of complete spiritual perfection that renders reincarnation no longer ETHNOCENTRISM necessary. - the tendency to look at the world HOFSTEDE’S CULTURE DIMENSIONS primarily from the perspective of one's THEORY own culture. - Part of ethnocentrism is the belief that - Framework used to understand one's own race, ethnic or cultural group difference in culture across countries. is the most important or that some or all aspects of its culture are superior. OTHER NOTES: BEGGAR THY NEIGHBOR - Protection of domestic industries by reducing imports and increasing exports ; mercantilism and neo-mercantilism Dharma - In Indian religion, the eternal law of the cosmos, inherent in the very nature of things. In Hinduism, dharma is seen as the cosmic law both upheld by the gods