Companies often find motivational reasons to expand globally. These motivations can be categorized into 4 groups: primary, alternate, proactive and reactive The progressive stages of economic integration, in order of intensity are: Preferential Trade Area, Custom Union, Free Trade Area, Common Market, and EU A large portion of all FX market transactions are spot transactions The Euro is the world’s leading currency Every country may not necessarily have its own security exchange The intended outcome of regional economic integration is to promote economic prosperity and stability among signatory nations The initial goal of NAFTA was to increase investment and decrease tariffs between Mexico and the U.S. Decisions to move domestic operations and products into the global marketplace include the desire to increase sales and profitability and to realize cost savings and profitability as a result of a partial or whole relocation in a foreign nation Two types of entry modes are available into a market: low intensity and high intensity. The main difference between the two depends on how much risk and/or control an entering business is willing to take Capacity planning is suggested, but not necessary, within operations management to allow companies to succeed In the U.S., the Federal Reserve Bank is responsible to regulate the growth of the economy The intent of forming a trading bloc may range from the potential of trade creation to the desire for economic protectionism Firms with reactive motivation will most likely enter the international market because they want to take the initiative to be aggressive while proactive firms go international because they must in order to compete One of the benefits of trading blocs is greater division of labor Two major contributing circumstances of the demise of the gold standard were the Great Depression and the Vietnam War European Community established its Exchange Rate Mechanism (ERM) in 1979 and formed the initial steps for the creation of a single European currency Operational bottleneck refers to the fact that capacity of a multistep production process is limited to the total output of the slowest process Production related reasons seem to be a small motivation why some domestic firms expand globally Export intermediaries are utilized to provide expertise to inexperienced exporters as they enter overseas markets Total quality management stresses the importance of teamwork Make or buy decisions can be taken lightly The reasoning behind layout of a facility is to maximize the work environment for customers, employee and the building itself Mercosur was initiated to expand the markets of Argentina, Brazil, Iran, and India A license is an agreement that allows one party to use an industrial property right in exchange for payment to the other party. The party giving the license is the licensee, while the party that gets to use the right is the licensor Total quality management must be based on ethics, integrity and trust in order to have a solid foundation Tax on imports is one example of a tariff barrier A facilitator is an individual whose job is to help to manage a process of information exchange The following factors are reactive motivations for firms to expand into the global economy: Competitive pressure, Excess capacity, Underproduction, Saturated or declining home market The futures market allows smaller traders to participate in a trade In a Free Trade area, member nations are allowed to determine their own trade policies with non-members Subsidies are special privileges that governments provide to the businesses in order to attract them to a region or simply to have funds required to operate successfully Some firms would rather remain domestic, but the market forces them global in order to remain profitable The adoption of the floating exchange rate resulted from the conclusion of the Bretton Woods Agreement Centralization allows decisions making authority to occur where the decisions are to be made The necessary conditions for expansion into global market, which drive global expansion, include expanding markets, gaining access to resources, increasing costs, and capitalizing on special feature of location In formulating a strategic global market entry plan, business managers should focus on: identifying the most attractive foreign markets to the firm; determining the best time to enter the global market; and whether to enter a potential market utilizing a large or small scale strategy The core element of regional economic integration is the trading bloc Firms are not at risk if they decide not to carefully examine, assess and evaluate a country’s organizational, social, cultural, political, judicial, market, economic, technological and industry trends prior to determine whether entry into an international market is financially feasible, unfavorable, or risky. The major disadvantage to the new form of centralization is that it does not allow for innovative thinking, nor does it engender employee initiative for problem solving The World Bank was established to help finance economic development in poor, under developed countries Centralization allows decision making authority to occur where the decisions are to be made The intent of forming a trading bloc can range from the potential of trade creation to the desire for economic protectionism The four categories of motivational reasons why companies expand globally are: primary, alternate, proactive and reactive Two major contributing circumstances to the demise of the gold standard were the Great Depression and the Vietnam War OPEC was founded in 1960 in Baghdad Export intermediaries provide expertise to inexperienced exporters as they enter overseas markets The greater division of labor is a benefit of trading blocs In the U.S., the President sets exchange rate policies Competitive pressure, excess capacity, underproduction, and a saturated or declining home market are reactive motivational factors that propel firms to expand into the global economy The initial goal of NAFTA was to increase investment and decrease tariffs between Mexico and the U.S. An ISO is, in actuality, a codification or assurance of quality and ISO is an internationally recognized certification system or process Trading blocs are the core elements of regional economic integration Total Quality Management (TQM) should be based, trust in order to establish a solid foundation Low intensity and high intensity are the two types of entry modes used to access markets A large portion of all FX market transactions are spot transactions The convergence of international and domestic pricing also indicates the era of the global producer National customer preferences is a market expansion risk variable that occurs when the firm may not understand foreign customer preferences and fail to offer “localized” products and services. Firms are better off selecting non-equity, low-investment entry modes in countries that have high environmental uncertainty The adoption of the floating exchange rate system resulted from the conclusion of the Bretton Woods Agreement Production related reasons seem to be relatively small motivational factors for domestic firms expand globally Firms with reactive motivation will most likely enter the international market because they want to take the initiative, while proactive firms expand internationally by necessity to remain competitive The major disadvantages to the new form of centralization are that it does not allow for innovative thinking, nor does it engender employee initiative for problem solving A license is an agreement that allows one party to use an industrial property right in exchange for payment to the other party. The party giving the license is the licensee, while the party that gets to use the right is the licensor The SBA will provide prospective businessmen with “face to face” services at one of their approximately 73 regional offices located within the United States Firms are not at risk if they decide not to carefully examine, assess and evaluate a country’s organizational,
social, cultural, political, judicial, market, economic, technological and industry trends prior to determining whether the entry into an international market is financially viable Decisions to move domestic operations and products into the global marketplace include the desire to increase sales and profitability and cost reductions from full or partial operational relocation to a foreign nation Continuity is an important aspect of the KANBAN cluster, which holds the distance between the supplier and the manufacturing hub as a key focus in the acquisition of raw materials In a Free Trade Area, member nations are allowed to determine their own trade policies with non-members In process planning, make or buy decisions can be taken lightly The main difference between low intensity and high intensity entry modes depends on how much risk and/or control an entering business is willing to accept or forgo Italy, Japan, and Turkey are all members of the OEDC Competitive pressure, excess capacity, underproduction, and a saturated or declining home market are reactive motivational factors that propel firms to expand into the global economy The reasoning behind the layout design of a facility is to maximize the work environment for customers, employees, and the overall building Technological turbulence and market dynamism are the two dimensions of environmental turbulence Two major contributing circumstances to the demise of the gold standard were the Great Depression and the Vietnam War The Euro is the world’s leading currency Firms are not at risk if they decide not to carefully examine, assess and evaluate a country’s organizational, social, cultural, political, judicial, market, economic, technological and industry trends prior to determining whether the entry into an international market is financially viable. Export intermediaries provide expertise to inexperienced exporters as they enter overseas markets MERCOSUR was initiated to expand the markets of Argentina, Brazil, Iran, and India When pursuing a mass customization strategy, demand for different features or options may be based on climate, culture, location, or personal preference Centralization allows decision making authority to occur where the decisions are to be made An Economic Union consists of several nations, each maintaining their own currency A large portion of all FX market transactions are spot transactions In the U.S., the Federal Reserve Bank is responsible for regulating the growth of the economy Continuity is an important aspect of the KANBAN cluster, which holds the distance between the supplier and the manufacturing hub as a key focus in the acquisition of raw materials Trading blocs are the core elements of regional economic integration The progressive stages of economic integration in order of intensity are: Preferential Trade Areas, Custom Unions, Free Trade Areas, Common Markets, and EUs The New York Stock Exchange itself does no business and keeps no record of transactions Only governments can issue bonds Every country may not necessarily have its own security exchange Greenfield investments require only process adaptation, not product adaptation The adoption of the floating exchange rate system resulted from the conclusion of the Bretton Woods Agreement Capacity planning is used in operations management and is suggested, but not a necessity, to help companies facilitate successful operations The intended outcome of regional economic integration is to promote economic prosperity and stability among signatory nations Many industrial firms choose to export for their first international entry mode National customer preferences is a market expansion risk variable that occurs when the firm may not understand foreign customer preferences and fail to offer “localized” products and services A license is an agreement that allows one party to use an industrial property right in exchange for payment to the other party. The party giving the license is the licensee, while the party that gets to use the right is the licensor Tax on imports is one example of a tariff barrier The initial goal of NAFTA was to increase investment and decrease tariffs between Mexico and the U.S Some firms would rather remain domestic, but the nature of the market forces them to globalize operations to remain profitable A facilitator is an individual whose job it is to help manage an information exchange process Firms must take into account the needs of the foreign market, the current economic trends, the political environment, and other important facts when timing their global expansion strategy In process planning, make or buy decisions can be taken lightly Low intensity and high intensity are the two types of entry modes used to access markets The Theory of Constraints (TOC) suggests that the greater gain will come from increasing total output from an entire process Total Quality Management (TQM) stresses the importance of teamwork The main difference between low intensity and high intensity entry modes depends on how much risk and/or control an entering business is willing to accept or forgo Firms are better off selecting nonequity, lowinvestment entry modes in countries that have high environmental uncertainty The necessary developments for expansion into global markets include expanding markets, gaining access to resources, increasing costs, and capitalizing on a special feature of location. Also known as the Toyota Production System, JIT was initially developed after WWII when the Japanese car industry was lagging far behind its U.S. competitors In the U.S., the President sets exchange rate policies The European Community established its Exchange Rate Mechanism (ERM) in1979 and formed the initial steps for the creation of a single European currency When formulating a strategic global market entry plan, business managers should focus on: identifying the most attractive foreign markets to the firm; determining the best time to enter the global market; and whether to enter a potential market utilizing a large or small scale strategy In a Free Trade Area, member nations are allowed to determine their own trade policies with nonmembers I have read all of the course requirements, and fully know that if I do not understand something about this course I should seek clarification from my professor One of the advantages of management contracts is that the management contractor does utilizes many of its assets to meet the contract demands An achievement of the SmootHawley Tariff Act was the Economic and Monetary Union (EMU) Operations managers are concerned with every aspect of the production process, including key areas such as research and development, acquisition and distribution, inventory management, technology, transportation, manufacturing, and customer service Transferring current managers to run new foreign operations might not be the best strategy to pursue when expanding operations into global markets Acquisitions and mergers are market strategies used is when a corporate entity needs complete control over every detail of the structure within the host country Customer knowledge competence is characterized as the knack to acquire, interpret, and integrate information regarding the global competitive environment The greater division of labor is a benefit of trading blocs The futures market allows smaller traders to participate in a trade Potential tax savings and managerial focus being drawn away from productivity to merger management are two advantages of mergers and acquisitions The SBA will provide prospective businessmen with “face to face” services at one of their approximately 73 regional offices located within the United States OPEC was founded in 1960 in Baghdad The intent of forming a trading bloc can range from the potential of trade creation to the desire for economic protectionism The four categories of motivational reasons why companies expand globally are: primary, alternate, proactive and reactive Production related reasons seem to be relatively small motivational factors for domestic firms expand globally