BMGT 350 Chapter Notes - Chapter 15: General Agreement On Tariffs And Trade, Foreign Exchange Controls, Income Distribution

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 350
• Professor: boyd

Document Summary

01:52: global firm: a firm that, by operating in more than one country, gains research and development (r&d), production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. Sees the world as one market; minimizes the importance of national boundaries and develops global brands. Raises capital, obtains materials and components, and manufactures and markets its goods wherever it can do the best job. Looking at the global marketing environment: the international trade system: when selling to another country, a firm may face restrictions on trade between nations. Tariffs or duties may be charged (taxes on certain imported products designed to raise revenue or protect domestic firms) which are often used to force favorable trade behaviors from other nations. Quotas (limits on the amount of foreign imports that they will accept in certain product categories) may be set by countries to conserve on foreign exchange and protect local industry and employment.