Terms

Question 1

IB

Answer 1

Transactions that are devised and carried out across national borders. These transactions are carried out by multinational enterprises, hereby MNEs. Multinational corporations = MNC. Transnational corporations = TNC.
Consequences = social, political, religious, legal, regulatory, ethical and management practices, institutional.

Question 2

Subsidiaries

Answer 2

a company controlled by a holding company

Question 3

GDP

Answer 3

Gross domestic products. the total value of goods produced and services provided in a
country during one year.

Question 4

Transparency International:

Answer 4

Ranks countries by the extent of corruption

Question 5

IMF

Answer 5

International monetary fond

Question 6

DVA

Answer 6

Domestic value added

Question 7

FVA

Answer 7

Foreign value added

Question 8

WB

Answer 8

World Bank

Question 9

Subvert

Answer 9

undermine the power and authority of (an established system or institution)

Question 10

Tariff

Answer 10

a tax or duty to be paid on a particular class of imports or exports. It is a form of regulation
of foreign trade and a policy that taxes foreign products to encourage or safeguard domestic
industry. Traditionally, states have used them as a source of income.

Question 11

Hegemon

Answer 11

A supreme leader

Question 12

Cultural myopia

Answer 12

is the lack of interest in learning about other cultures, or to recognize what’s
good in other cultures

Question 13

Totalitarian

Answer 13

relating to a system of government that is centralized and dictatorial and requires complete subservience to the state.

Question 14

PPP

Answer 14

purchasing power parity, means that you can buy the same amount of goods abroad as you would do in your own country after considering the exchange rates.

Question 15

Imperialism

Answer 15

a state’s endeavor to gain political, cultural, economic, or military dominance beyond its own borders.

Question 16

Utilitarianism

Answer 16

a theory of morality, which advocates actions that foster happiness or pleasure and opposes actions that cause unhappiness or harm. When directed toward making social, economic, or political decisions, a utilitarian philosophy would aim for the betterment of society as a whole. Utilitarianism would say that an action is right if it results in the happiness of the greatest number of people in a society or a group.

Question 17

Mercantilism

Answer 17

a country’s best interest to maintain a trade surplus, export more than import.

Question 18

Economies of scale

Answer 18

cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.

Question 19

Opportunity cost

Answer 19

the forgone benefit that would have been derived by an option not chosen. To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others.