domestic business A business that acquires all of its resources and sells all of its products or services within a single country

international business A business that is primarily based in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries

multinational business One that has a worldwide marketplace from which it buys raw materials, borrows money, and manufactures its products and to which it subsequently sells its products

global business A business that transcends national boundaries and is not committed to a single home country

exporting Making a product in the firm's domestic marketplace and selling it in another country

importing Bringing a good, service, or capital into the home country from abroad

licensing An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales

strategic alliances A cooperative arrangement between two or more firms for mutual benefit

joint ventures A special type of strategic alliance when the partners share in the ownership of an operation on an equity basis

direct investment When a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country

maquiladoras Light assembly plants built in northern Mexico close to the U.S. border that are given special tax breaks by the Mexican government

market economy An economy based on the private ownership of business and allows market factors such as supply and demand to determine business strategy

market systems Clusters of countries that engage in high levels of trade with each other

European Union (EU) The first and most important international market system

North American Free Trade Agreement (NAFTA) An agreement between the United States, Canada, and Mexico to promote trade with one another

Pacific Asia A market system located in Southeast Asia

infrastructure The schools, hospitals, power plants, railroads, highways, ports, communication systems, air fields, and commercial distribution systems of a country

nationalized To be taken over by the government

tariff A tax collected on goods shipped across national boundaries

quota A limit on the number or value of goods that can be traded

export restraint agreements Accords reached by governments in which countries voluntarily limit the volume or value of goods they export and import from one another

economic community A set of countries that agree to markedly reduce or eliminate trade barriers among its member nations (a formalized market system)

social orientation A person's beliefs about the relative importance of the individual versus groups to which that person belongs

power orientation The beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations

uncertainty orientation The feeling individuals have regarding uncertain and ambiguous situations

goal orientation The manner in which people are motivated to work toward different kinds of goals

time orientation The extent to which members of a culture adopt a long term versus a short term outlook on work, life, and other elements of society.