Chapter 1 Flashcards
International Business
A business (firm) that engages in international (cross-border) activities and/or the action of doing business abroad.
Multinational Enterprise
A firm that engages in foreign direct investments and operates in multiple countries
Foreign Direct Investment
Investments in, controlling and managing value added activities in other countries
Emerging Economies
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
the sum of value added by resident firms, households and government operating in an economy
Purchasing Power Parity
a conversion that determines the equivalent amount of goods and services different currencies can purchase. It is an adjustment that reflects the differences in cost of living
Expatriate Assignments
a temporary job abroad with a multinational company
Gross National Product
gross domestic product plus income from non-resident sources abroad
Gross National Income
GDP plus income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP
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 combination of long-term trends and pendulum swings
Traid
three regions of developed economies (North America, Western Europe, and Japan)
Base of the Pyramid
the vast majority of humanity, about four billion people, who make less that 1500 euro a year
