Business in Europe

Question 1

Economic Integration

Answer 1

Free flow of trade and investment between countries beyond what is attainable through the WTO

Question 2

Political Integration

Answer 2

Likelihood of violent conflict and war will decrease, Politically much stronger dealing with other nations

Question 3

Impediments Integration

Answer 3

Cost of integration, concern about national sovereignty

Question 4

Hofstede’s Power Distance

Answer 4

The degree to which members of a national culture automatically accept hierarchical or unequal distributions of power - Low: strive for equality, High: everyone has their place in life

Question 5

Hofstede’s Individualism

Answer 5

The degree to which individuals in a given national culture perceive themselves as separate from others and free from pressure to conform - High: every man for themselves, Low: socialism

Question 6

Collectivism

Answer 6

A preference for a tight knit society where individuals expect people to look after them in exchange for unwaivering loyalty

Question 7

Hofstede’s Masculinity -

Answer 7

Achievement, Power, Material rewards are important

Question 8

Femininity

Answer 8

Consensus oriented - wants cooperation, modesty, caring for the weak, and quality of life

Question 9

Hofstede’s uncertainty Avoidance

Answer 9

SDegree to which members of a given nation culture tolerate uncertainty and risk in everyday life. High - stick to set rules, don’t like to do unorthodox things. Low - Relaxed, like to take risks

Question 10

Hofstede’s Time Orientation

Answer 10

Degree to which countries value long term success over short term gratification. LTO: save, invest, achieve bigger results, STO: strong concern with absolute truth, respect for tradition, want to save and see quick results

Question 11

Hofstede’s Indulgence

Answer 11

How much a society allows relatively free gratification. High: lots of ability to enjoy natural human desires, Low: higher restraint on indulgence due to social norms

Question 12

Coal and Steel Community

Answer 12

1951 - Created by France, Germany, Luxembourg, Belgium, Italy, and Netherlands. Combined Coal and Steel Production and the trade of them.

Question 13

Treaty of Rome

Answer 13

1957 - Created the European Economic Community and the European Atomic Energy Community

Question 14

Merger Treaty

Answer 14

1967 - Merged EEC and Euratom

Question 15

Maastricht Treaty

Answer 15

1991 - Signed by 12 countries and created a common monetary and economic union

Question 16

Glocalization P

Answer 16

Product - Capital goods or final consumption goods. Examples are machinery.

Question 17

Glocalization P

Answer 17

Promotion - Marketing campaigns

Question 18

Glocalization M

Answer 18

Managerial - Keeping organizational practices local but up to global standards

Question 19

Discount Rate

Answer 19

interest rate used by central banks when lending money to commercial banks

Question 20

Reserve Requirement

Answer 20

The amount of cash financial institutions must hold at all times.

Question 21

4 Major powers of the EU - CMC P

Answer 21

european COUNCIL
council of MINISTERS
european COMMISSION
european PARLIAMENT

Question 22

Globalization

Answer 22

Process of Europe becoming more interconnected and working together better. Examples include both economically and politically.