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a clearly stated outline of how the business intends to generate revenue
legal differences in global competition
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USA & UK= common law: tradition, customs, judicial interpretation
France & Germany= civil law: legal codes
Iran & Pakistan= theocratic law: based on religious principles
-tax havens and bribery
,balance of payments
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the sum of all payments one nation receives from other nations - the sum of
all payments it makes to other nations, over some period of time
seasonal unemployment
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predictable increases and decreases in the need for workers in industries
with seasonal fluctuations in customer demand
-ex: agriculture, leisure and entertainment, retailing, and accounting
services
fiscal policy
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use of gov't revenue collection and spending to influence the business
cycle
-changes in the gov'ts revenues and expenditures to stimulate a slow
economy or dampen a growing economy that is in danger of overheating
and causing inflation
export subsidies
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a form of financial assistance in which producers receive enough money
from the gov't to allow them to lower their prices in order to compete more
effectively in the global market
economic environment
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the conditions and forces that affect the cost and availability of good,
services, labor and thereby shape the behavior of buyers and sellers
monetary policy
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gov't policy and actions taken by the Federal Reserve Board to regulate the
nation's money supply
-adjusting the money supply by increasing or decreasing the interest rates
consumer bill of rights (JFK)
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, -right to buy safe products- and to buy them safely
-right to be informed
-right to choose which product to buy
-right to be heard
transnational strategy
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a hybrid approach that attempts to reap the benefits of international scale
while being responsive to local market dynamics
import quotas
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limits placed on the quantity of imports a nation will allow for a specific
product
linking of risk and reward is important because
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businesses wouldn't have incentives to take risks without rewards and to
encourage smart and responsible decision making