GLOBAL BUSINESS ENVIRONMENT Flashcards
- is any commercial transaction that crosses the borders of two or more nations.
International Business
goods and services purchased abroad and brought into a country.
Imports
goods and services sold abroad and sent out of a country.
Exports
is a business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in multiple countries.
Multinational Corporation (MNC)
The purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.
FOREIGN DIRECT INVESTMENT
The purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.
Foreign direct investment -
a company with a global perspective that engages in international business from inception and quickly achieves a competitive advantage.
Born global firm
is the name we give to this trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.
Globalization
is the value of all goods and services produced by a domestic economy during a one-year period.
Gross domestic product (GDP)
the value of all goods and services produced by a country’s domestic and international activities during a one-year period.
gross national product (GNP)
refers to the convergence in buyer preferences in markets around the world. This trend is occurring in many product categories, including consumer goods, indus trial products, and business services.
Globalization of markets
- refers to the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.
Globalization of production
a treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade.
General Agreement on Tariffs and Trade (GATT)
are essentially taxes levied on traded goods
Tariffs
are limits on the quantity of an imported product.
nontariff barriers
is the international organization that enforces the rules of international trade.
World Trade Organization (WTO)
is an agency created to provide financing for national economic development efforts.
World Bank
is an agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system.
International Monetary Fund (IMF)
the use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners.
e-commerce
- includes all devices and equip ment that are readable, recognizable, locatable, addressable and/or controllable via the internet.
Internet of Things (IoT)
The process of changing information from analog to digital form for use by computers and other information technologies.
Digitization
- is the use of digital data and technology to develop a digital platform for new business operations, strategies, or business models.
Digitalization
- is fundamental change in which digital technologies penetrate all areas of operations, strategy, and culture to create customer-focused competitive advantage.
Digital transformation
is an indispensable tool that manag ers use to stay in contact with international operations.
Videoconferencing
refers to your ability to learn a concept and appro priately apply that knowledge in another setting to achieve a higher level of understanding.
application of knowledge
involves purposeful and goal-directed thinking used to define and solve problems, make decisions, or form judgments related to a set of circum stances.
Reflective (critical) thinking
which involves following a fact pattern to draw a conclusion.
analytical thinking,
- is another workplace skill that this course will help you to improve. We define these concepts simply as sets of guiding principles that influence the way individuals and organizations behave within society.
ethical understanding and social responsibility
influences how firms conduct their operations in both subtle and not-so-subtle ways. No business is entirely immune to events in the international business environment, as evidenced by the long-term trend toward more porous national borders.
international business environment -
is vastly different from the management of a purely domestic business. Widely dispersed production and marketing activities today means companies commonly interact with people in distant locations.
International business management
an attribute that is difficult to imitate and enables a firm to outper form its competitors in the same industry.
competitive advantage
is individual behavior in accordance with principles for good conduct or morality.
ethical BEHAVIOR
an ethics theory advocating actions that foster happiness and opposing actions that cause unhappiness. This theory asserts that it is the consequences of a decision that determine its ethical value.
utilitarianism
- states that every human being has rights and all governments are obligated to protect them.
Rights theory
- describes a society of free citizens who have equal basic rights and who cooperate within an egalitarian economic system.
theory of justice
- says the morality of an act depends on how the act is perceived within that specific culture at the time of the act.
Cultural relativism
a formal statement that conveys ethical values and describes baseline profes sional conduct expected of individuals.
code of ethics
the belief that a company should incorporate social objectives within its goals and policies and contribute positively to society.
corporate social responsibility (CSR)
Corporate Citizen (Desired)
Philantrophic
Fair and Just (expected)
Ethical
Lawful Actions (required)
Legal
Sustained Profits (required)
Economic-
a view of capitalism that stresses the interconnected relationships between a business and those who have an interest, or “stake,” in the organization.
stakeholder theory—
include all parties who affect, or are affected by, a company’s activities.
Stakeholders
external stakeholders
(e.g., suppliers, customers, creditors, unions, communities, governments, media).
- is a form of business entity that is legally empowered to pursue positive stakeholder impacts alongside profits.
benefit corporation -
- movement is a community of mission-driven entrepreneurs that is creating a new kind of company that balances purpose and profit to use business as a force for good.
Certified B Corporation
