Chapter 2: Terms Flashcards
International Business
A firm that engages in international (cross-border) economic activities and or the action of doing business abroad.
Multinational enterprises (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 countries.
Emerging economies (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.
BRIC
Brazil, Russia, India and China
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 non-resident 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 differences in cost of living in different countries.
Expatriate assignment
A temporary job abroad with a multinational company
An institution-based view
Suggests that success and failure of firms are enabled and constrained by the different rules of the game.
Drawback: If we push this view to its logical extreme, then firms’ performance around the globe would be entirely determined by their environments
A resource-based view
Suggests that success and failure of firms are enabled and constrained by internal resources and capabilities.
Liability of outsidership
That 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.
Views on globalisation
- new business opportunities.
- growing inequality around the world.
- Increased competition for jobs, especially for low-skilled workers.
- more similar and that eliminates the distinctiveness of our national cultures and identities.
