Chapter 1 Flashcards
International business:
(1) A firm that engages in international (cross-border) economic activities
and/or (2) the action of doing business abroad
Multinational enterprise (MNE):
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 countrie
Emerging economies (emerging markets):
Economies that only recently established
institutional frameworks 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 value added by resident firms, households and
governments operating in an economy
Gross national product (GNP):
Gross domestic product plus income from non resident sources
abroad
Gross national income (GNI):
GDP plus income from nonresident sources abroad. GNI is the
term used by the World Bank and other international organizations to supersede the term GNP
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 cost of living in different countries
Institution based view:
Formal and informal rules of the game
Resource-based view
Firm-sepcific resources and capabilities
Triple bottom line:
Performance along economic, social and environmental dimensions
Liability of outsidership:
The inherent disadvantage that outsiders experience in a new
environment because of their lack of familiarity
Industry 4.0:
Disruptions of operations and supply chains through advances in digital
technologies
Globalization:
A process leading to greater interdependence and mutual awareness among
economic, political and social units in the world, and among actors in general
Risk management:
The identification, assessment and management of risks
Liberalisation:
The removal of regulatory restrictions on business
Waves of globalisation:
The patterns of globalization arising from a combinations of long-term
trends and pendulum swings
Reverse innovation:
Multinationals tapping into local knowledge in a less developed country to
advance their global products
Ethnocentric perspective:
A view of the world through the lens of one’s own culture
Not-invented-here syndrome:
The tendency to distrust new ideas coming from outside of one’s
own organisation or community
Global mindset:
Cognitive ability to connect your own activities to what is happening around the
world
Cosmopolitans:
The people embracing culture diversity and the opportunities of globalization
