| ethnocentric staffing | A staffing policy in which all key management positions are staffed by home country nationals.
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| expatriates | Home country executives sent to a foreign post.
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| exporting | Producing a good at home, then shipping it to another country.
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| foreign direct investment | Investments by a company based in one nation in business activities in another nation.
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| franchising | Licensing the right to offer a service in a particular format.
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| geocentric staffing | A staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality.
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| global standardization strategy | Treating the world market as a single entity, selling the same basic product around the globe.
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| globalization | The process whereby national economies and business systems are becoming deeply interlinked with each other.
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| globalization of markets | The merging of historically distinct and separate national markets into one huge global marketplace.
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| globalization of production | Sourcing goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production.
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| international trade | The sale of a good or service across borders.
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| joint venture | An agreement between a firm and a partner to establish a new enterprise in which they each take an equity stake.
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| licensing | Licensing a foreign firm to produce its product in a country or region in return for royalty fees on any sales that the licensee makes.
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| local customization strategy | Varying some aspect of product offerings or marketing messages to take country or regional differences into account.
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| location economies | The economies that arise from performing a business activity in the optimal locations for that activity.
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| market economy | An economy in which businesses are privately owned and prices are set by the interaction of supply and demand.
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| multinational enterprise (MNE) | A business that has productive activities in two or more countries.
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| norms | The informal rules and shared expectations that groups establish to regulate the behavior of their members; the social rules and guidelines that prescribe appropriate behavior in particular situations.
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| polycentric staffing | A staffing policy in which key management positions in a subsidiary are staffed by host country nationals.
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| quotas | A limit on the number of items of a good that can be imported from a foreign nation.
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| regional trade agreements | Agreements to remove barriers to trade between nations within a geographic region.
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| social culture | The system of values and norms that are held in common by people living in a society.
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| socialist economy | An economy in which businesses are owned by the state and prices are set by state planners.
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| tariffs | A tax on imports.
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| wholly owned subsidiary | A foreign subsidiary that is fully owned by a firm.
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