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Forces driving globalization sākt mācīties
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cost factors, market factors, technology factors, global business cycle
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looking for cheaper labour and manufacturing costs, outsource to other countries, which get an inward investment, jobs and technology
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domestic markets become saturated, switch to emerging markets, establish a global presence due to global clients, it is dangerous to stand aside
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the Internet makes comparison of supply chain costs and of final price, software tools on company intrantes allow managers to access information anywhere, anytime
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it is now international, in every turn of the cycle, the pace of globalization is likely to increase
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Company strategy in the face of globalization sākt mācīties
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Import/Export, Outsourcing, Foreign direct investment
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lowest risk, lowest profit, franchising, foreign licensing
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deeper level of involvement with a long-term contractual agreement
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Foreign direct investment sākt mācīties
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highest risk, most control and shows the most commitment to the global market, buy property and businesses in the foreign nation, it includes: acquisition, joint ventures, strategic alliances
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Political strategy in the face of globalization sākt mācīties
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being in favour of market forces and deregulation, being in favour of subsidies and protectionism
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being in favour of market forces and deregulation sākt mācīties
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labour market more flexible, lower taxes, cut red tape, encourage free trade
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being in favour of subsidies and protectionism sākt mācīties
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protect job security, social benefits, high taxes in order to pay for social programmes, protect national business and jobs, tariffs and quotas on imports
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Measuring and analysing global trade sākt mācīties
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balance of trade, balance of payments, exchange rates
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imports minus exports, when import is higher then export we have trade surplus, opposite trade deficit
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sākt mācīties
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balance of trade plus services and investments
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currencies fluctuate against each other
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cancel out quotas and tariffs
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works towards reducing tariffs and quotas, mediates in trade disputes
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international monetary found sākt mācīties
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lends money to developing countries
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