Exam#1 Chapter 01 Flashcards
Base of the Pyramid
Economies where people make less than 2,000 US per capita per year
BRIC
Stands for Brazil, Russia, India, China
BRICS
Brazil, Russia, India, China, South Africa
Emerging Economies
countries that are starting to emerge as new players in the economy
Global business factors
Business around the globe:
1. international business
2. Domestic business
Great Transformation
Shift in economic weight and engines of growth toward emerging economies (BRICS)
Gross Domestic Product
Sum of value added by
Residents + households + government
International Business Factors
- Business firm that engage in international business
- Action of doing business abroad
MNE’s
Firm that engages in foreign direct investments by
investing, controlling, and managing value added activities in other countries
Purchasing Power Parity
Adjustment to reflect the differences in cost of living in various countries
Triad
N American, Western Europe, Japan
Explain the concepts of international business and global business, with a focus on
emerging economies
Give three reasons why it is important to study global business
to better compete in the corporate
world that will require global expertise and
to enhance your understanding of what is going on in the global economy
And to…..
Articulate one fundamental question and two core perspectives in the study of global
business.
Identify three ways of understanding what globalization is.
What 2 perspectives shape firms
around the globe?
institution based view
resource based view
Institution based view
suggests that the success and failure are enabled by governments/institutions
Institutions
rules of the game
Formal Institutions
laws, regulations, rules
Informal institutions
cultures, ethics, and norms
Resource based view
focuses on a firms internal resources and capabilities
Globalization
is the close integration of countries and peoples of the world
