Midterm 1 Vocab

Question 1

Geopolitical Due Diligence

Answer 1

Assess local, regional and transnational risks facing a company

Question 2

International Business

Answer 2

Commercial transaction that crosses the border of two or more nations

Question 3

Imports

Answer 3

Goods and services purchased abroad and brought into a country

Question 4

Exports

Answer 4

Goods and services sold abroad and out of a country

Question 5

Gross Domestic Product

Answer 5

The value of all goods and services produced by a domestic economy over a one year period

Question 6

Gross National Product

Answer 6

GDP + Income from international activities

Question 7

Globalization

Answer 7

Trend towards greater economic, cultural, political and technological interdependence among national institutions and economics

Question 8

Regional Trade Agreements

Answer 8

Small groups of nations integrating their economies

Question 9

Three Types of Globalization

Answer 9

1: Economic
2: Political
3: Social

Question 10

Economic Globalization

Answer 10

Trade and Investment volumes, trade and capital restrictions

Question 11

Social Globalization

Answer 11

Dissemination of information and ideas

Question 12

Political Globalization

Answer 12

Political cooperation with other countries

Question 13

Ethics Concern

Answer 13

Cross-country differences in safety, health and environmental standards

Question 14

The Law of semi-globalization

Answer 14

International business activity, while significant, is much less intense than domestic activity for large, advanced economies

Question 15

The Law of Distance

Answer 15

International interactions are dampened by distance along cultural, administrative, geographic and economic dimensions

Question 16

National Competitive Advantage Theory

Answer 16

A nation’s competitiveness in an industry depends upon the capacity of the industry to innovate and upgrade

Question 17

International Product Life Cycle

Answer 17

Theory stating that a company will begin exporting its product and later take on FDI as it moves through its life cycle

Question 18

Factor Proportions Theory

Answer 18

Trade theory stating that countries produce and export goods that require resources that are abundant and import goods that require resources in short supply

Question 19

Comparative Advantage

Answer 19

Inability to produce a good more efficiently than other nations but an ability to produce that good more efficiently than it does any other good

Question 20

Absolute Advantage

Answer 20

Ability of a nation to produce a good more efficiently than any other nation

Question 21

Mercantilism

Answer 21

Nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports

Question 22

International Trade

Answer 22

Purchase, sale or exchange of goods and services across national borders

Question 23

Culture

Answer 23

The set of values, beliefs, rules (norms) and institutions held by a specific group of people

Question 24

Subculture

Answer 24

A group of people who share a unique way of life with a larger, dominant culture

Question 25

Aesthetics

Answer 25

What a culture considers “good taste” in the arts, imagery and symbolism

Question 26

Manners

Answer 26

Appropriate ways of behaving, speaking and dressing in a culture are called manners

Question 27

Customs

Answer 27

Habits or ways of behaving in specific circumstances that are passed down through generations in a culture

Question 28

The “Brain Drain” Phenomenon

Answer 28

Departure of highly educated people from one profession, geographic region or nation to another

Question 29

Monotheists

Answer 29

Believe in a single God

Question 30

Polytheists

Answer 30

Believe in multiple Gods

Question 31

Pantheists

Answer 31

believe that everything in the universe is part of, is one with, and is the same God

Question 32

Panentheists

Answer 32

Believe that the entire universe is one with God, but there is more to God than the universe

Question 33

Henotheists

Answer 33

Worship a single God without actively denying the existence of other Gods

Question 34

Deists

Answer 34

Believe in a single creator God, but they reject revealed religion

Question 35

Agnostics

Answer 35

Believe that nothing is known or can be known of the existence or nature of God of anything beyond material phenomena, claiming neither faith nor disbelief in God

Question 36

Athiest

Answer 36

A person who believes or lacks belief in the existence of God or Gods

Question 37

Cultural Imperialism

Answer 37

The replacement of one’s culture’s traditions, folk heroes and artifacts with substitutes from another

Question 38

Political System

Answer 38

Structures, processes and activities by which a nation governs itself

Question 39

Capitalism

Answer 39

Belief that ownership of the means of production belongs in the hands of individuals and private business

Question 40

Economic Systems

Answer 40

Structures and processes a country uses to allocate its resources and conduct its commercial activities

Question 41

Legal System

Answer 41

Set of laws and regulations, including the processes by which a country’s laws are enacted and enforced and the ways in which its courts hold parties accountable for their actions

Question 42

Standardization

Answer 42

The uniformity in interpreting and applying laws across countries, not to the standardizing of entire legal systems

Question 43

Foreign Direct Investment

Answer 43

Purchase of physical assets or a significant amount of the ownership (stock) of a company in another country to gain a measure of management control

Question 44

Free Trade

Answer 44

The pattern of imports and exports that would result in the absence of trade barriers