Eco 333 - 1-5

Front 1

Globalization

Back 1

is the ongoing process that deepens and broadens the relationships and interdependence among countries.

Front 2

International Business:

Back 2

consists of all commercial transactions - including sales, investments, and transportation - that take place between two or more countries.

Front 3

Multinational Enterprises (MNEs)

Back 3

Take a global approach to markets and production. Sometimes they are referred to as multinational corporations or companies (MNCs) or transnational companies (TNCs).

Front 4

Culture:

Back 4

The specific learned norms or a society, based on attitudes, values, and beliefs

Front 5

Cultural imperialism:

Back 5

Change by imposition

Front 6

Cultural relativism:

Back 6

The belief that behavior has meaning and can be judged only in its specific cultural context.

Front 7

Cultural normativism

Back 7

(absolutist) There are universal standards of behavior that all cultures should follow

Front 8

Ascribed group memberships

Back 8

based on gender, family, age, caste, and ethnic, racial or national origin

Front 9

Acquired group memberships

Back 9

based on religion, political affiliation, and professional and other associations

Front 10

Polycentrism

Back 10

overwhelmed by national differences that it won’t introduce workable changes

Front 11

Ethnocentrism

Back 11

overlooks national differences and ignores important factors, believes home-country objectives should prevail, thinks change is easy

Front 12

Geocentrism

Back 12

uses business practices that are hybrids of home and foreign norms

Front 13

Cultural Diversity

Back 13

A means of gaining global competitive advantage by bringing together people of diverse backgrounds and experience.

Front 14

Cultural Distance

Back 14

When a company moves within a cluster of culturally similar countries, it should expect to encounter fewer cultural differences to face fewer cultural adjustments.

Front 15

Cultural Friction

Back 15

A business interaction may be viewed negatively because of possible changes in power relationships and the sovereignty that sets countries apart.

Front 16

Pluralism

Back 16

the coexistence of different ideologies

Front 17

Totalitarianism

Back 17

decision making is restricted by a few individuals

Front 18

Civil Law

Back 18

based on tradition, precedent, custom and usage, and interpretation by the courts

Front 19

Political system

Back 19

The complete set of institutions, political organizations, and interest groups. Or the relationships among institutions, and the political norms and rules that govern their functions.

Front 20

Individualism

Back 20

primacy of the rights and role of the individual

Front 21

Collectivism

Back 21

primacy of the rights and role of the community

Front 22

Pluralism

Back 22

holds the belief that there are multiple opinions about an issue, each of which contains part of the truth, but none that contain the entire truth.

Front 23

Political Ideology:

Back 23

The system of ideas that expresses the goals, theories, and aims of a sociopolitical program.

Front 24

Democracy

Back 24

Wide participation by citizens in the decision making process

Front 25

Political Risk:

Back 25

The risk that political decisions or events in a country negatively affect the profitability or sustainability of an investment (systemic, procedural, distributive, catastrophic)

Front 26

Legal System:

Back 26

The mechanism for creating, interpreting, and enforcing the laws in a specified jurisdiction (common, civil, theocratic, customary, mixed).

Front 27

Intellectual Property:

Back 27

Intangible property rights that are a result of intellectual effort.

Front 28

Gross National Income (GNI):

Back 28

The income generated both by total domestic production as well as the international production as well as the international production activities of national companies.

Front 29

Gross National Product (GNP):

Back 29

The value of all final goods and services produced within a nation in a given year, plus the income earned by its citizens abroad, minus the income earned by foreigners from domestic production.

Front 30

Gross Domestic Product (GDP):

Back 30

The total value of all final goods and services produced in a country in a given year equal to total consumer, investment, and government spending plus the value of exports, minus the value of imports.

Front 31

Internal Debt:

Back 31

Portion of the government debt that is denominated in the country’s own currency and held by domestic residents.

Front 32

External Debt:

Back 32

Debt owed to foreign creditors and denominated in foreign currency.

Front 33

Current Account:

Back 33

Tracks all trade activity in merchandise

Front 34

Capital Account:

Back 34

Tracks both loans given to foreigners and loans received by citizens

Front 35

Economic System

Back 35

A mechanism that deals with the production, distribution, and consumption of goods and services (market, command, and mixed economies)

Front 36

Balance of Payments (BOP):

Back 36

Is a system of recording all of a country’s economic transactions with the rest of the world over a period of one year.

Front 37

Command Economy:

Back 37

also known as a centrally planned economy is a system whereby the government owns and controls resources.

Front 38

Gini coefficient:

Back 38

measures the extent to which the distribution of resources deviates from a perfectly equal distribution.

Front 39

Market Economy

Back 39

is a system in which individuals, rather than government, make the majority of economic decisions.

Front 40

Mixed Economy:

Back 40

Combines elements of the market and command economic systems; both government and private enterprise influence production, consumption, investment, and savings.

Front 41

Purchasing Power Parity:

Back 41

Provides a method of measuring the relative purchasing power of different countries’ currencies for the same basket of goods and services.

Front 42

FDI:

Back 42

Foreign Direct Investment

Front 43

Normativism:

Back 43

Ethical truths depend on the groups holding them

Front 44

Relativism:

Back 44

There are universal standards of behavior that all cultures should follow.