Brainscape's Knowledge GenomeTM

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


See full index

SGMT 2200 > Chapter 2 Terms > Flashcards

Chapter 2 Terms 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 Institutions Examples:

A

Laws, Regulations, Rules

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

Supportive Pillar of Formal Institutions

A

Regulatory (Coercive)

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

Informal Institutions Examples:

A

Norms, Cultures, Ethics

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

Supportive Pillars of Informal Institutions

A

Normative and Cognitive

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

Formal institution:

A

Institution represented by laws, regulations, and rules

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

Regulatory pillar:

A

The coercive power of governments

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

Informal institution:

A

Institution represented by cultures, ethics, and norms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
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
13
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
14
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
15
Q

Transaction cost:

A

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

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

Opportunism:

A

The act of self-interest seeking with guile

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
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)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The key role of institutions is to:

A

The key role of institutions is to reduce uncertainty by constraining the range of acceptable actions.
− Uncertainty can lead to transaction costs.
− Transaction costs also rise from opportunism, the act of seeking self-interest with guile.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Unstable and unreliable institutional frameworks:

A

− Increase transaction costs
− Decrease transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
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
21
Q

Nonmarket (political) strategy:

A

A strategy that centers on leveraging political and social relationships

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

2 Core Propositions of the Institution Based View

A

Proposition 1: Managers and Firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework

Proposition 2: While formal and informal institutions combine to govern firm behaviour, in situations where formal constraints are unclear or fail, informal constraints will play a larger role in reducing uncertainty and providing constancy managers and firms.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
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
24
Q

Democracy:

A

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

25
Q

− Totalitarianism (dictatorship):

A

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

26
Q

Communist totalitarianism:

A

centers on a communist party

27
Q

Right-wing totalitarianism:

A

is characterized by its intense hatred against communism

28
Q

Theocratic totalitarianism:

A

refers to the monopolization of political power in the hands of one religious party or group

29
Q

Tribal totalitarianism

A

refers to one tribe or ethnic group monopolizing political power and oppressing other tribes or ethnic groups

30
Q

Political risk:

A

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

30
Q

Authoritarianism:

A

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

31
Q

Geopolitics:

A

International political relations

32
Q

Legal system:

A

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

33
Q

Civil law:

A

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

34
Q

Common Law:

A

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

35
Q

Theocratic Law:

A

A legal system based on religious teachings

36
Q

Property right:

A

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

37
Q

Intellectual property (IP):

A

Intangible property that is the result of intellectual activity

38
Q

Intellectual property rights (IPR):

A

Right associated with the ownership of intellectual property

39
Q

Patent:

A

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

40
Q

Copyright:

A

Exclusive legal right of authors and publishers to disseminate their work

41
Q

Trademark:

A

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

42
Q

Piracy:

A

Unauthorized use of intellectual property

43
Q

Economic System:

A

Rules of the game on how a country is governed economically

44
Q

Market Economy:

A

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

45
Q

Command Economy:

A

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

46
Q

Mixed Economy:

A

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

47
Q

State Owned Enterprise:

A

A firm owned and controlled by the state (government)

48
Q

Moral Hazard:

A

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

49
Q

State Capitalism:

A

A capitalist, market-based system with substantial state ownership

50
Q

Hybrid Organization:

A

An organization that incorporates elements from different institutional logics

51
Q

Macro Environment:

A
  1. The national/international economy
  2. Technology
  3. Government & Politics
  4. The natural environment
  5. Demographic Structure
  6. Social structure
52
Q

The industry Environment:

A
  1. Suppliers
  2. Competitors
  3. Customers
53
Q

PEST Analysis:

A

Political, Economic, social, Technological enological

54
Q

5 Forces:

A
  1. Supplier Power
  2. Industry Rivalry
  3. Threat of Entry
  4. Threat of Substitutes
  5. Buyer Power
55
Q

Political Changes:

A

Changes in government economic Policy e.g. taxation, government spending, monetary policy

Changes in legal requirements (employment law, health and safety legislation, licensing practices, environmental regulations, competition policy

Changes in the government ownership (nationalization, privatization, e-regulation)

56
Q

Economic Changes:

A

Changes in the level of economic activity (growth rates , rates of unemployment, inflation)

Changes in Wage Rates and Income distribution

Changes in Exchange Rates

57
Q

Social Changes:

A

Changes in Demographics (size of population, age distribution)

Changing Attitudes (work life balance, concern for environment, ethical standards)

Changes in Social Structure (Socio economic groupings, social mobility)

58
Q

Technological Changes:

A
  1. Development of new products and processes
  2. Automation
  3. Developments in information and communications technology
    4.Developments in the natural sciences

SGMT 2200 (10 decks)

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