globalization
trend away from distinct national economic units and toward one huge global market, shift toward a more integrated and interdependent world economy
globalization of markets
moving away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national markets are merging into one global market
globalization of production
trend by individual firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost and quality of factors of production (labor, energy, land, and capital)
factors of production
inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how
General Agreement on Tariffs and Trade (GATT)
international treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO
World Trade Organization (WTO)
the organization that succeeded GATT as a result of the successful completion of the Uruguay Round of GATT negotiations. It enfoces the rules of international trade.
International Monetary Fund (IMF)
international institution set up to maintain order in the international monetary system
World Bank
international institution set up to promote general economic development in the world's poorer nations
United Nations
an international organization made up of 193 countries headquartered in NYC, formed in 1945 to promote peace, security, and cooperation
G20
established in 1999, the G20 comprises the finance ministers and central bank governors of the 19 largest economies in the world, plus representatives from the European Union and the European Central Bank
international trade
occurs when a firm exports goods or services to consumers in another country
Foreign Direct Investment (FDI)
direct investment in business operations in a foreign country
Moore's Law
the power of microprocessor technology doubles and its costs of production fall in half every 18 months
stock of foreign direct investment
the total accumulated value of foreign-owned assets at a given time
Multinational Enterprise (MNE)
a firm that owns business operations in more than one country
international business
any commercial transaction that crosses the borders of two or more nations
e-commerce
When businesses or consumers use technology to conduct transactions
born global firm
A company that adopt a global perspective and engages in international business from or near its inception.
Gross Domestic Product (GDP)
the valuse of all goods and services produces by a domestic economy, over a one-year period.
Gross National Product (GNP)
The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.
GDP or GNP per capita
Divide by population of the country to obtain this value.