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BUSMHR 2000 > Midterm Review Ch1-6 > Flashcards

Midterm Review Ch1-6 Flashcards

1
Q

international business

A

the business activities that involve the transfer of resources, knowledge, goods, services, skills or information across national boundaries

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2
Q

portfolio investments

A

passive int’l investments

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3
Q

FDI

A

foreign direct investment (active)

direct investment in business operations in a foreign country

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4
Q

multinational enterprise

A

a firm that engages in int’l investments (also MNC, TNC)

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5
Q

home country

A

country in which MNE is headquartered

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6
Q

host country

A

foreign country in which MNE is doing business

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7
Q

globalization

A

process of increasing interdependence and integration of national economies

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8
Q

economic imperatives of globalization

A

lower prices
higher quality
more products to choose from

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9
Q

globalization of production

A

produce different parts of the product or service in different countries
search for lowest cost production sites/areas with best skills for specific activities
ex. Boeing

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10
Q

globalization of markets

A

sell the product or service in many countries
economies of scale
higher revenue base
not just the big boys

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11
Q

requirements for globalization (6)

A

free movement of goods and services across int’l borders
relative economic stability across the world
relative political stability across the world
communication improvements
technological improvements
transportation improvements

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12
Q

globalization hurts…

A

the environment

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13
Q

GATT

A

international treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO

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14
Q

WTO

A

polices world trade

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15
Q

IMF

A

maintains order in int’l money system

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16
Q

World Bank

A

promotes general economic development in poorer generations

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17
Q

UN

A

peace, security, cooperation

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18
Q

G20

A

finance ministers of top 19 economies, plus World Bank

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19
Q

Moore’s Law

A

power of microprocessor tech doubles, cost halves every 18 months

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20
Q

legal outsourcing case

A

Sacha Baron Cohen
legal work to India
Pangea3, David Perla

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21
Q

political economy

A

the political, economic and legal systems of a country

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22
Q

political system

A

system of gov’t in a nation

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23
Q

collectivism

A

concerned with the needs of the overall society or group, rather than those of the individual
socialism, welfare states

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24
Q

individualism

A

guarantee individual freedom and expression

people can pursue own economic self interest

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25
socialist
someone who believes in public ownership of the means of production for the common good of society
26
communists
those who believe socialism can be achieved only through revolution and totalitarian dictatorship
27
social democrats
those committed to achieving socialism by democratic means
28
privatization
sale of state owned enterprises to private interests
29
market economy
interrelationship of price, quantity, supply and demand | legal & institutional frameworks safeguard economic choice
30
command economy
gov't sets goals, determines prices and quantity of production large bureaucracy, monopolies guaranteed benefits shortage economy
31
mixed
degrees of both market and central planning maximizes power of the state in certain areas can be for socialist objectives
32
state-directed economy
governmental planning and intervention in the economy based on goals and objectives of an established industrial policy does not require state ownership ex. Japan's MITI (ministry of int'l trade & invs)
33
GNP
market value of final goods and services newly produced by domestic factors of production, whether at home or abroad
34
GDP
value of production that occurs within a country's borders, whether done by domestic or foreign factors of production
35
GNI
GDP plus net foreign income earned
36
PPP
number of units of a country's currency required to buy the same amount of goods/services in the domestic market as one $ would buy in US
37
quality of life
human happiness, life expectancy, educational standards, purchasing power, health, sanitation, treatment of women
38
HDI
Human Development Index measures quality of life based on: life expectancy educational attainment PPP based average incomes
39
democracy
pol system where gov't by the people
40
totalitarianism
gov't where one person/party has absolute control
41
rep. democracy
pol system where citizens vote for reps in gov't
42
communist totalitarianism
version of collectivism where socialism can only be achieved through a totalitarian dictatorship
43
theocratic totalitarianism
pol system where religious principles are used by ruling party/individual
44
tribal totalitarianism
a party/individual representing a particular tribe monopolizes political power
45
right wing totalitarianism
politically monopolizing party/individual permits economic freedom, but represses individual political freedom to deter communism
46
common law
based on tradition, precedent, customs and usage | interpretation by courts
47
civil law
based on detailed laws organized into a code
48
theocratic law
based on religious precepts (Islamic law)
49
first to file
grants patent protection to the first to file
50
first to invent
grants patent protection to the first inventor of the technology
51
CIGS
set of rules governing aspects of commercial contracts between businesses of different nations
52
private action
theft, piracy by private individuals
53
public action
extortion of income/resources by public officials
54
culture
the norms and values shared among a group of people and when taken together constitute a design for living
55
values
abstract ideas about what a society believes to be good, right, and desirable
56
norms
social rules and guidelines that prescribe appropriate behavior in particular situations
57
society
group of people bound together by a common culture
58
Determinants of Culture (6)
``` religion social structure language education economic philosophy political philosophy ```
59
social structure
basic social organization of a society
60
religion
a system of shared beliefs and rituals that are concerned with the realm of the sacred
61
ethical systems
a set of moral principles, or values, that are used to guide and shape behavior
62
language (spoken and unspoken)
spoken: verbal cues, language structures perception of world unspoken: body language, personal space, gender interaction
63
nation state
a political creation | may contain several cultures
64
formal education
medium through which many of society's language, conceptual, and mathematical skills are taught
65
power distance
extent of power differential across social groups
66
individualism vs. collectivism
relationship between the individual and others within a culture
67
uncertainty avoidance
extent to which individuals are comfortable with uncertain or ambiguous situations
68
masculinity vs. femininity
the relationship between gender and work roles
69
time orientation
acceptable time for fruits of labor (drawn from Confucianism)
70
ethnocentrism
belief that home country ideas and values are superior to those of other countries
71
polycentrism
belief that local customs and values should prevail over that of home country
72
geocentrism
the best practices and ideas can be found in and adopted from any part of the world
73
business ethics
accepted principles of right or wrong governing the conduct of business people
74
ethical strategy
a strategy or course of action that does not violate these accepted principles
75
most common ethical issues (5)
``` employment practices human rights environmental regulations corruption moral obligation of multinational corporations ```
76
employment practices
Who's standards apply?
77
human rights
investment justifiable in countries with limited human rights?
78
environmental protection
should a int'l firm abide by home standards abroad?
79
noblesse oblige
benevolent behavior that is the responsibility of successful enterprises
80
spiderman doctrine
with power comes the social responsibility for corps to give something back to the societies that enable them to prosper and grow
81
Foreign Corrupt Practices Act
1977 | US law regulating firm conduct in bribes, unethical actions
82
Friedman doctrine
only social responsibility of the firm is to increase profits (within the rules of law)
83
cultural relativism
belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate
84
righteous moralism
belief that a multinational's home country standards of ethics are the appropriate ones for companies to follow in foreign countries
85
naive immoralism
belief that if a manager of a multinational sees that firms from other nations are not following ethical norms in the host nation, that manager should not either
86
free trade
absence of barriers to the free flow of goods and services between countries
87
new trade theory
based on strategic advantages of exports: use of excess capacity reduced production costs via econ of scale increased markup in foreign mkts spread risk by diversifying mkts helps to acquaint firms with the foreign market with less operational risk than FDI
88
mercantilism
economic philosophy of encouraging exports and discouraging imports GOLD!!!!!!!!!!!!!!!!!!!!!
89
absolute advantage
Adam Smith | countries specialize in what they are more efficient than anyone else at producing
90
comparative advantage
David Ricardo | gains from trade can arise from relative efficiencies
91
assumptions of abs, comp adv (4)
full employment economic efficiency is the goal gains from trade need not be equally divided resources are not mobile
92
Hecksher-Ohlin Theory
factors in relative abundance are cheaper than scarce factors these differences in input costs create relative advantages in productivity
93
Leontief paradox
US exports more labor intensive products and imports more capital intensive products
94
Product Life Cycle
1. introduction, innovation 2. growth 3. maturity 4. decline
95
assumptions of PLC (3)
differences among countries persist over time standardized products tech doesn't change rapidly
96
economies of scale
cost advantages associated with large-scale production
97
first mover advantages
advantages accruing to the first to enter a market
98
nation's competitiveness
depends on capacity of industry to innovate and upgrade
99
Porter's Diamond Model - National Competitive Advantage
factor endowments demand conditions related and supporting industries firm strategy, structure, rivalry
100
gov't in diamond model
establish overarching national goals educational system infrastructure enforce strict environmental, product safety standards

BUSMHR 2000 (2 decks)

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