Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Seminar in International Business > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Institutional transition

A

Fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect firms as players

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Institution-based view

A

A leading perspective in global business that suggests that the success and failure of firms are enabled and constrained by institutions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Institution

A

Formal and informal rules of the game

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Institutional framework

A

Formal and informal institutions that govern individual and firm behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Formal institution

A

Institutions represented by laws, regulations, and rules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Regulatory pillar

A

The coercive power of governments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Informal institution

A

Institutions represented by cultures, ethics, and norms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Normative pillar

A

The mechanism through which norms influence individual and firm behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Norms

A

Values, beliefs, and actions of relevant players that influence the focal individuals and firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Cognitive pillar

A

The internalized (or taken-for-granted) values and beliefs that guide individual and firm behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Transaction cost

A

The cost associated with economic transactions or, more broadly, the costs of doing business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Opportunism

A

The act of seeking self-interest with guile

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Transition economies

A

A subset of emerging economies, particularly those moving from central planning to market competition (such as China, Poland, Russia, and Vietnam)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Bounded rationality

A

The necessity of making rational decisions in the absence of complete information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Political system

A

The rules of the game on how a country is governed politically

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Democracy

A

A political system in which citizens elect representatives to govern the country on their behalf

17
Q

Totalitarianism (dictatorship)

A

A political system in which one person or party exercises absolute political control over the population

18
Q

Political risk

A

The risk associated with political changes that may negatively impact domestic and foreign firms

19
Q

Legal system

A

The rules of the game on how a country’s laws are enacted and enforced

20
Q

Civil law

A

A legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments

21
Q

Civil law countries example

A

Argentina, Belgium, Brazil, Chile, China, Egypt, France, Germany, and Greece

22
Q

Common law

A

A legal tradition that is shaped by precedents and traditions from previous judicial decisions

23
Q

Common law countries example

A

Australia, Canada, Hong Kong, India, Ireland, Kenya, and the United States

24
Q

Theocratic law

A

A legal system based on religious teachings

25
Q

Theocratic law countries example

A

Iran, Saudi Arabia, and the United Arab Emirates

26
Q

Property right

A

The legal right to use an economic property (resource) and to derive income and benefits from it

27
Q

Intellectual property (IP)

A

Intangible property that is the result of intellectual activity

28
Q

Intellectual property right (IPR)

A

Right associated with the ownership of intellectual property

29
Q

Patent

A

Exclusive legal rights of inventors of new products or processes to derive income from such inventions.

30
Q

Trademarks

A

Exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others

31
Q

Piracy

A

The unauthorized use of intellectual property rights

32
Q

Economic system

A

Rules of the game on how a country is governed economically

33
Q

Market economy

A

An economy that is characterized by the “invisible hand” of market forces

34
Q

Command economy

A

An economy in which all factors of production are government- or state-owned and controlled, and all supply, demand, and pricing are planned by the government

35
Q

Mixed economy

A

An economy that has elements of both a market economy and a command economy

36
Q

Market transition debate

A

The debate about how to make the transition to a market economy work in most effective and least disruptive way

37
Q

Path dependency

A

The present choices of countries, firms, and individuals are constrained by the choices made previously

38
Q

Herd mentality

A

A behavior influenced by the movement of the crowd (or the herd) with little independent judgment

39
Q

Title of Chapter 2

A

Understanding Formal Institutions: Politics, Laws, and Economics

Seminar in International Business (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions