Ib Midterm Exam

Front 1

the specific learned norms of a society that reflect attitudes, values. and beliefs

Back 1

culture

Front 2

basic similarity amongst people within countries that include values, language, race, national identity, and a common perception of history ... however it does not mean that all people are alike

Back 2

nation as point of reference

Front 3

the deepening relationship and broadening interdependence among people from different parts of the world

Back 3

globalization

Front 4

all commercial transactions between two or more countries

Back 4

international business

Front 5

globalization leads to
1. (more/ less) variety
2.( higher / lower) prices
3. (higher / lower) quality

Back 5

1. more
2. lower
3. higher

Front 6

what are the 7 forces behind globalization?

Back 6

1. more technology
2. liberalization of cross border trade
3. development of services that support IB
4. consumer pressures
5. more global competition
6. changing political situation
7. more cross national cooperation

Front 7

what are the 3 criticisms of globalization?

Back 7

1. threat to national sovereignty
2. economic growth and use of natural resources
3. growing income inequality

Front 8

3 reasons why companies engage in IB

Back 8

1. expand sales
3. minimize/ diversify risk
2. acquire resources

AME

Front 9

a collaborative arrangement of critical importance to one or more of the alliance partners

Back 9

strategic alliance

Front 10

a firm that takes a global approach to its foreign markets and production and is willing to consider market and production anywhere in the world

Back 10

multinational enterprise MNE

Front 11

the imposition of one culture over another

Back 11

cultural imperialism

Front 12

what are some cultural stabilizers? name 2

Back 12

religion
language

Front 13

company runs units like local units

Back 13

polycentric

Front 14

home culture superior so what works at home also works abroad

Back 14

ethnocentric

Front 15

hydrid between incorporating home culture and local culture

Back 15

geocentric

Front 16

the complete set of institutions, political organizations, and interest groups; the relationship amongst those institutions, and the political norms and rules that govern their functions

Back 16

political system

Front 17

in this politica system people accept the primacy of individual freedoms in the political, economic, and cultural realms. people believe in minimal government intervention

Back 17

individualistic

Front 18

in this political system people reason that the needs of society take preedence over the needs of the individual. people believe that it is the governments role to define the needs and priorities of the country

Back 18

collectivist

Front 19

the body of constructs, theories, and aims that constitue a sociopolitical program. ex. liberal and conservative principls of the democratic and republican party

Back 19

political ideology

Front 20

one side of the political spectrum that believes that widespread citizen participation in the decision- making and governance processes, directly or non directly through representatives

Back 20

democracy

Front 21

on one side of the political spectrum, the monopolization of power by a single agent.

Back 21

totalitarian

Front 22

the expectation (likelihood) that the political climate will change in such a way that a firms operating position of investment value will deteriorate

Back 22

political risk

Front 23

the least destructive political risk that occurs with elections and policy shifts; create both opportunities and risks

Back 23

systemic

Front 24

the second least destructive political risk that occurs wth partisan judicial system, labor disputes... can raise the cost of getting things done

Back 24

procedural risk

Front 25

the 3rd least destructive political risk that occurs wth tax and regulatory revisions to capture greater benefits from foreign firms. Countries may qustion whether they are getting their fair share of returns, as opposed to all going to the forein investor

Back 25

distributive risk

Front 26

the most destructive form of political risk that occurs with random political events like civil disorder or war

Back 26

catastrophic risk

Front 27

the mechanism for creating, interpreting, and enforcing the laws in a specified jurisdiction

Back 27

legal system

Front 28

a type of legal system that is based on judge-made precedent

Back 28

common law

Front 29

type of legal system that is based upon a set of laws that comprise a code. Judges not create law, but apply to existing legal codes

Back 29

civil law

Front 30

type of legal system that is based upon religious precepts. Confers ultimate legal authority on religious leaders

Back 30

theocratic law

Front 31

type of legal system that emerges when two or more legal systems are used within a single country

Back 31

mixed legal

Front 32

what are the 6 leading sources of political risk?

Back 32

1. nationalization
2. international war/ civil strife
3. unilateral breaches of contract
4. harmful action against people
5. restrictions on repatriation of profits
6. discriminatory taxation policies

Front 33

a legal issue in IB that affects factors of day to day operations. ex. firing and hiring employees

Back 33

operational concerns

Front 34

a legal issue in IB that affects product safety and liability.

Back 34

strategic concern

Front 35

ownership rights to intangible assets such as patents, copyrights, trademarks...etc

Back 35

Intellectual property rights IPR's

Front 36

rate of growth for a company is called ...

Back 36

economic performance

Front 37

forecast for economy for a company is called

Back 37

economic potential

Front 38

what are 6 key economic forces?

Back 38

1. general economic framework of country
2. degree of economic stability
3. existence/ role of capital markets
4. presence of factor endowments
5. market size
6. existence of economic infrastructure

Front 39

a nations input into the production process such as human physical knowledge and capital resources and infrastructure

Back 39

factor conditions

Front 40

the broadest measure of economic activity of a country

Back 40

GNI- gross national income

Front 41

the number of units of a country's currency required to buy the same amount of goods and services in the domestic market that one unit of income would buy in another country

Back 41

PPP purchasing power parity

Front 42

the value of exports exceeds the value of imports

Back 42

trade surplus

Front 43

the value of imports exceeds the value of exports

Back 43

trade deficit

Front 44

the set of structures and processes that guides the allocation of scarce resources and shapes the conduct of business activities in a nation

Back 44

economic system

Front 45

a free market economy (capitalistic) built upon the private ownership and control of the factors of production

Back 45

market economy

Front 46

a centrally planned economy built upon government ownership and control of the factors of production

Back 46

command economy

Front 47

an economy in which economic decision are largely market driven and ownership is largely private, but significant government intervention is still evident.

Back 47

mixed economy

Front 48

the sale/ legal transfer of government owned resources to private individuals and entities.

Back 48

privatization

Front 49

the relaxation or removal of restrictions on the free operation of markets and business practices to raise the level of competitiveness thus boosting productivity and efficiency

Back 49

deregulation

Front 50

the protection of real (tangible) and intellectual (intangible) properties

Back 50

property rights