Chap. 1 Flashcards
International Business
1) A business firm that engages in international (cross-border) economic activities and/or (2) doing business abroad
Multinational Enterprise
A firm that engages in foreign direct investments and operates in multiple countries
Foreign Direct Investment (FDI):
Investments in, controlling and managing value added activities in other countries
Emerging economies (emerging markets):
Economies that only recently established institutional framework that facilitate international trade and investment, typically with low or middle level income and above average economic growth
Gross Domestic Product (GDP):
The sum of the value added by resident firms, households and governments operating in an economy.
Purchasing Power Parity (PPP):
A conversion that determines the equivalent amount of goods and services different currencies can purchase. This conversion is usually used to capture the difference in the cost of living
Expatriate Assignments
A temporary job abroad with a multinational company
Gross National Income (GNI):
GDP plus income from non-resident sources abroad. GNI is the term used by the world bank and other international orgs to superseded the term GNP.
Institution Based View
Formal and Informal rules of the game
Resource Based View
Firm specific resources and capabilities
Liability of Outsidership
The inherent disadvantage that outsiders experience in a new environment because of their lack of familiarity.
Globalization
A process leading to greater interdependence and mutual awareness among economic, political and social units in the world and among actors in general
Liberalization
The removal of regulatory restrictions on business
Waves of Globalization
The pattern of globalization arising from a combo of long term trends and pendulum swings.
Triad
Three regions of developed economies (North America, Western Europe, and Japan)
