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Global 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

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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

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3
Q

Institution

A

Formal and informal rules of the game

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4
Q

Institutional framework

A

Formal and informal institutions that govern individual and firm behavior

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5
Q

Formal institution

A

Institution represented by laws, regulations, and rules

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6
Q

Regulatory pillar

A

The coercive power of governments

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7
Q

Informal institution

A

Institution represented by cultures, ethics, and norms

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8
Q

Normative pillar

A

The mechanism through which norms influence individual and firm behavior

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9
Q

Norms

A

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

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10
Q

Cognitive pillar

A

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

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11
Q

Transaction cost

A

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

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12
Q

Opportunism

A

The act of self-interested seeking with guile

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13
Q

Transition economy

A

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

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14
Q

Bounded rationality

A

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

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15
Q

Nonmarket (political) strategy

A

A strategy that centers on leveraging political and social relationships

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16
Q

Institutional work

A

Purposive action aimed at creating, maintaining, and disrupting institutions

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17
Q

Political system

A

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

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18
Q

Democracy

A

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

19
Q

Totalitarianism (dictatorship)

A

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

20
Q

Authoritarianism

A

A political system in which political plurality is undermined and
concentrated government power is imposed

21
Q

Political risk

A

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

22
Q

Geopolitics

A

International political relations

23
Q

Legal system

A

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

24
Q

Civil law

A

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

25
Q

Common law

A

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

26
Q

Theocratic law

A

A legal system based on religious teachings

27
Q

Property right

A

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

28
Q

Intellectual property (IP)

A

Intangible property that is the result of the intellectual activity

29
Q

Intellectual property rights (IPR)

A

Rights associated with the ownership of the intellectual property

30
Q

Patent

A

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

31
Q

Copyright

A

Exclusive legal right of authors and publishers to disseminate their work

32
Q

Trademark

A

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

33
Q

Piracy

A

Unauthorized use of intellectual property

34
Q

Economic system

A

Rules of the game on how a country is governed economically

35
Q

Market economy

A

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

36
Q

Command economy

A

An economy that is characterized by government ownership and control of factors of production

37
Q

Mixed economy

A

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

38
Q

State-owned enterprise (SOE)

A

A firm owned and controlled by the state (government)

39
Q

Moral hazard

A

Recklessness when people and organizations (including firms and governments) do not have to face the full consequences of their actions

40
Q

State capitalism

A

A capitalist, market-based system with substantial state ownership

41
Q

Moral hazard

A

Recklessness when people and organizations (including firms and governments) do not have to face the full consequences of their actions

42
Q

State capitalism

A

A capitalist, market-based system with substantial state ownership

43
Q

Hybrid organization

A

An organization that incorporates elements from different institutional logics

Global Business (4 decks)

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