| Association of Southeast Asian Nations (ASEAN) | Trading bloc consisting of ten countries in Asia.
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| command economy | In a planned economy or a central-planning economy, the government owns most businesses and regulates the amounts, types, and prices of goods and services.
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| countertrading | Bartering goods for goods.
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| culture | A shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.
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| democratic governments | Governments that rely on free elections and representative assemblies.
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| developed countries | Countries with a high level of economic development and generally high average level of income among their citizens.
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| dumping | A foreign company's practice of exporting products abroad at a price lower than the home-market price, or even below the costs of production, in order to drive down the price of the domestic product.
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| e-commerce | Electronic commerce; the buying and selling of goods and services over computer networks.
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| embargo | A complete ban on the import and/or export of certain products.
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| ethnocentric managers | Managers who believe that their native country, culture, language, and /or behavior are superior to others.
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| European Union (EU) | Union of 25 trading partners in Europe.
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| exchange rate | The rate at which one country's currency is exchanged for another country's currency.
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| expatriate manager | A manager living or working in a foreign country.
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| exporting | Producing goods domestically and selling them outside the country.
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| expropriation | A government's seizure of a foreign company's assets.
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| Foreign Corrupt Practices Act of 1977 | An act that makes it illegal for employees of U.S. companies to bribe political decision makers in foreign nations.
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| franchising | A form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services.
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| free market economy | Economic model in which production of goods and services is controlled by private enterprise and the interaction of the forces of supply and demand rather than by the government.
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| free trade | The movement of goods and services among nations without political or economic obstruction.
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| geocentric managers | Managers who accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.
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| global economy | The increasing tendency of the economies of the world to interact with one another as one market instead of as many national markets.
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| global outsourcing | Using suppliers outside the United States to provide labor, goods, and/or services.
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| global village | The "shrinking" of time and space as air travel and electronic media make it easier for the people of the globe to communicate with one another.
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| globalization | The trend of the world economy toward becoming a more interdependent system.
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| greenfield venture | A wholly-owned foreign subsidiary that the owning organization has built from scratch.
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| import quota | A trade barrier in the form of a limit on the numbers of a product that can be imported.
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| importing | Buying goods outside the country and reselling them domestically.
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| infrastructure | The physical facilities that form the basis of a country's level of economic development.
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| International Monetary Fund (IMF) | One of three principal organizations designed to facilitate international trade; its purpose is to assist in smoothing the flow of money between nations.
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| joint ventures | Organizations that join forces to realize strategic advantages that neither could have achieved alone; a U.S. firm may form a joint venture, also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country.
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| less-developed countries | Also known as developing countries; nations with low economic development and low average incomes.
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| licensing | Company X allows a foreign company to pay it a fee to make or distribute X's product or service.
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| maquiladoras | U.S. manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens.
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| Mercosur | The largest trade bloc in Latin America, with four core members: Argentina, Brazil, Paraguay, Uruguay.
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| mixed economy | An economy in which most of the important industries are owned by the government, but others are controlled by private enterprise.
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| monochronic time | The standard kind of time orientation in U.S business; preference for doing one thing at a time.
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| most favored nation | This trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties.
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| multinational corporation | Business firm with operations in several countries.
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| multinational organization | Nonprofit organization with operations in several countries.
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| nonverbal communication | Messages in a form other than the written or the spoken word.
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| North American Free Trade Agreement (NAFTA) | Formed in 1994, the trading bloc consisting of the United States, Canada, and Mexico.
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| outsourcing | Subcontracting of services and operations to an outside vendor. Using suppliers outside the company to provide goods and services.
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| political risk | The risk that political changes will cause loss of a company's assets or impair its foreign operations.
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| polycentric managers | Managers who take the view that native managers in foreign offices best understand native personnel and practices, and so the home office should leave them alone.
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| polychronic time | Kind of time orientation common in Mediterranean, Latin American, and Arab cultures; preference for doing more than one thing at a time.
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| privatization | The making private of business activities, as when stateowned activities are performed by private enterprise.
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| tariff | A trade barrier in the form of a customs duty, or tax, levied mainly on imports.
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| totalitarian governments | Governments ruled by a dictator, a single political party, or a special-membership group.
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| trade protectionism | The use of government regulations to limit the import of goods and services.
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| trading bloc | Also known as an economic community; a group of nations within a geographical region that have agreed to remove trade barriers with one another.
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| wholly owned subsidiary | A foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by the organization.
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| World Bank | One of three principal organizations designed to facilitate international trade; its purpose is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications.
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| World Trade Organization (WTO) | One of three principal organizations designed to facilitate international trade; it is designed to monitor and enforce trade agreements.
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