Midterm 1 Vocab Flashcards
Geopolitical Due Diligence
Assess local, regional and transnational risks facing a company
International Business
Commercial transaction that crosses the border of two or more nations
Imports
Goods and services purchased abroad and brought into a country
Exports
Goods and services sold abroad and out of a country
Gross Domestic Product
The value of all goods and services produced by a domestic economy over a one year period
Gross National Product
GDP + Income from international activities
Globalization
Trend towards greater economic, cultural, political and technological interdependence among national institutions and economics
Regional Trade Agreements
Small groups of nations integrating their economies
Three Types of Globalization
1: Economic
2: Political
3: Social
Economic Globalization
Trade and Investment volumes, trade and capital restrictions
Social Globalization
Dissemination of information and ideas
Political Globalization
Political cooperation with other countries
Ethics Concern
Cross-country differences in safety, health and environmental standards
The Law of semi-globalization
International business activity, while significant, is much less intense than domestic activity for large, advanced economies
The Law of Distance
International interactions are dampened by distance along cultural, administrative, geographic and economic dimensions
National Competitive Advantage Theory
A nation’s competitiveness in an industry depends upon the capacity of the industry to innovate and upgrade
International Product Life Cycle
Theory stating that a company will begin exporting its product and later take on FDI as it moves through its life cycle
Factor Proportions Theory
Trade theory stating that countries produce and export goods that require resources that are abundant and import goods that require resources in short supply
Comparative Advantage
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
Absolute Advantage
Ability of a nation to produce a good more efficiently than any other nation
Mercantilism
Nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports
International Trade
Purchase, sale or exchange of goods and services across national borders
Culture
The set of values, beliefs, rules (norms) and institutions held by a specific group of people
Subculture
A group of people who share a unique way of life with a larger, dominant culture
Aesthetics
What a culture considers “good taste” in the arts, imagery and symbolism
Manners
Appropriate ways of behaving, speaking and dressing in a culture are called manners
Customs
Habits or ways of behaving in specific circumstances that are passed down through generations in a culture
The “Brain Drain” Phenomenon
Departure of highly educated people from one profession, geographic region or nation to another
Monotheists
Believe in a single God
Polytheists
Believe in multiple Gods
Pantheists
believe that everything in the universe is part of, is one with, and is the same God
Panentheists
Believe that the entire universe is one with God, but there is more to God than the universe
Henotheists
Worship a single God without actively denying the existence of other Gods
Deists
Believe in a single creator God, but they reject revealed religion
Agnostics
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
Athiest
A person who believes or lacks belief in the existence of God or Gods
Cultural Imperialism
The replacement of one’s culture’s traditions, folk heroes and artifacts with substitutes from another
Political System
Structures, processes and activities by which a nation governs itself
Capitalism
Belief that ownership of the means of production belongs in the hands of individuals and private business
Economic Systems
Structures and processes a country uses to allocate its resources and conduct its commercial activities
Legal System
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
Standardization
The uniformity in interpreting and applying laws across countries, not to the standardizing of entire legal systems
Foreign Direct Investment
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
Free Trade
The pattern of imports and exports that would result in the absence of trade barriers
