Intl Biz 1 Flashcards
What is the most global of markets?
Markets for industrial goods and markets that serve universal need.
What is meant by “globalization of markets”?
Merging separate national markets into one global market.
How does international trade differ from international investments?
Trade equals exports, investments equals manufactured goods
What was accomplished by the Uruguay round of GATT?
Reduce trade barriers, extended GATT to cover services
How is technology change effected global trade and investment?
Made a tangible reality, telecommunication, the web, transportation.
How is the source of world output changed since 1960?
US reduced in industrial countries
How has FDI investment flows changed since 1980?
US well and 14%, France & developing raised. Hope to stifle US.
What are the concerns voiced by globalization opponents?
Job loss, decrease in wage rates of unskilled workers, environmental Degradation, cultural imperialism of global media, multinational enterprises.
What accounts for the economic stagnation of some of the world’s poor countries?
Totalitarian government, expanding population, large debts.
How is managing an international business different from managing a purely domestic business?
Varies in market strategies, where it is placed, ethical issues of law labor, which country to enter/avoid, countries are different, wider/complex problems, within limits of barriers, regulations and other country policies, conversion of the dollar.
How does collectivism differ versus individualism?
Collective goals, socialism versus freedom and self-expression.
What are the various forms of totalitarianism?
Communist, theocratic, tribal and right wing.
How does a command economy differ from market economy?
Command: goods/services, quantity, price by government, religious freedom, restrict’s individual political freedom to prevent communism
What are three main types of legal systems in use around the world?
Common, civil, Theocratic
What does the foreign corrupt practices act attempt to do?
Stop corruption: bribery, cheating, pressuring, etc.
What are the various types of intellectual property?
Products of the mind protected by patents, copyrights, trademarks.
What is it meant by “human development Index”?
Quality-of-life in a country based on life expectancy at birth, educational attainment, whether average income meets cost-of-living.
How does deregulation differ from privatization?
Deregulation: removal of government restrictions concerning conduct of business. Privatization: state to private.
How do first mover advantages contrast with late mover disadvantages?
First mover: build brand loyalty, gain experience in countries business transactions.
What are three types of risk when doing business in another country
Political, economic, legal.
How do cultural values differ from cultural norms?
Values: belief of good, right, desirable. Norms: rules to adhere too.
How does the social structure of “the East” differ from “the West”?
The East: more group, social oriented. West: more individual.
How does a caste system differ from a class system?
Case is based on family/a very nonremovable. Class more movility possible
What is it meant by “class consciousness”?
Perceived in terms of class background used to shape relationships.
