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25 Cards in this Set
- Front
- Back
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The concept of globalization |
process of social, political, economic, cultural, and technological integration among countries around the world |
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Global Village Term |
The world has “shrunk” by modern advances incommunications (social networking websites) |
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Market economy |
free economy dominates with slight regulations of government; private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices
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Command economy |
government acts as the monopoly; has explicit control over the price and supply of a good or service |
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Mixed economy |
combination of market and command; while some aspects of this system reflect private ownership and the freedom and flexibility of the law of demand, other sectors are subject to government planning |
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Political systems |
Democracy: system in which government is controlled by citizens either directly or through elections Totalitarianism: only one representative party which exhibits control over every facet of political and human life |
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Collectivism vs Individualism |
collectivism- views the needs/goals of society > individual desires individualism- people should be free to pursue economic and political endeavors without constraint private property more successful, productive, and progressive than communal property |
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Common vs Case law |
common - law that derives from English law and is the foundation of legislation in the US, Canada, and England, among other nations case - law is derived from Roman law and is found in the non-Islamic and non-socialist countries |
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Macro vs Micro political risks |
Micro: analysis directed toward government politics and actions that influence selected sectors of the economy or specific foreign businesses in the country Macro: analysis that reviews major political decisions likely to affect all enterprises in the country |
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Ethics |
study of morality and standards of conduct dilemmas arising form conflicts between ethical standards of a country and business ethics are most evident in employment and business practices |
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Corporate Social Responsibility (CSR) |
involves the actions of a firm to benefit society beyond requirements of the law and the direct interest of the firm includes working conditions in factories and service centers as well as environmental impacts of corporate activities |
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Sustainability |
development that meets current needs without harming the future |
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Codes of ethics for MNCs |
committed MNCs to maintain certain standards ex. UN Global Compact codes help offset real or perceived concern that companies move jobs to avoid higher labor or environmental standards in their home markets |
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Cultural relativism |
the view that all beliefs, customs, and ethics are relative to the individual within his own social context "right" and "wrong" are culture-specific; what is considered moral in one society may be considered immoral in another, and since no universal standard of morality exists, no one has the right to judge another society's customs |
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United Nations Global Compact contains 10 principles |
involves human rights, labor standards, environment, and anti-corrpution |
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US ranking on the Transparency International |
5 |
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Foreign Corrupt Practices Act |
Makes it illegal for US companies and their managers to attempt to influence foreign officials through personal payments or political contributions |
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What is culture? |
acquired knowledge that people use to interpret, experience, and generate social behaviors; forms values, creates attitudes, and influences behavior |
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Models of culture |
Outer ring: explicit artifacts and products of the culture ex. language, food, buildings, art Middle ring: norms and values of the society ex. designed to help people understand how they should behave Inner ring: implicit, basic assumptions that govern behavior ex. organize themselves in a way that helps them increase the effectiveness of their problem-solving processes and interact well with each other |
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Organizational culture: family culture |
strong emphasis on hierarchy and orientation to persons power-oriented |
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Organizational culture: Eiffel tower |
strong emphasis on hierarchy and orientation to task role-oriented |
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Organizational culture: guided missile |
strong emphasis on equality in workplace and orientation to the task project-oriented Loyalty to process and project > organization |
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Organizational culture: incubator |
strong emphasis on equality and personal orientation fulfillment-orientated emotional commitment to the nature of the work |
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Political risk |
the unanticipated likelihood that a business's foreign investment will be constrained by a host government's policies |
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Ways of managing political risk |
Transfer risks - government policies that limit the transfer of capital, payments, production, people, and technology in and out of country ex. tariffs on exports and imports, restrictions on exports Operational risks - government policies and procedures that directly constrain management and performance of local operations ex. price controls, financing restrictions Ownership control risks - government policies or actions that inhibit ownership or control of local operations ex. foreign-ownership limitations, pressure for local participation |
