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43 Cards in this Set
- Front
- Back
Corporate social responsibility
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operating a business in a manner that meets or exceeds the ethical, legal, commercial, and public expectations of stakeholders 9customers, shareholders, employees, and communities)
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Country risk
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exposure to potential loss or adverse affects on company operations and profitability caused by developments in a countrys political and/ or legal enviornments
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Extraterritorality
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application of home-country laws to persons or conduct outside of national borders
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Intellectual property
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ideas or works created by people or firms, such as patents, trademarks and copyrights
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intellectual property rights
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the legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties
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legal systems
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a system for interpreting and enforcing laws
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political system
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a set of formal istitutions that constitue a government
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rule of law
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the existence of a legal system where rules are clear, publicly disclosed, fairly enforced, and widely respected by individuals, organizations, and the government
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transparency
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the degree to which firms regularly reveal substantial information about their financial condidtion and accounting practices
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international business is influenced by
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political and legal systems
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adverse developments in political and legal systems increase
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country risk.. these can result from events such as a change in government or the creation of new laws or regulations
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what are the three existing major political systems
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totalitarianism, socialism, and democracy
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totalitarianism
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seeks to control not only economic and political matters but the attitudes, values and beliefs of its citizens.. They are generally theocratic (religion based) or secular (non religion based)
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socialism
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capital and wealth should be vested in the state and use primarly as a means of production for use rather than for profit. It is based on a collectivst ideology in which the collective welfare of the peopleis believed to outweigh the welfare of the individual
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democracy
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characterized by two key features: private property rights and limited government
Under democracy individual persuits of people and firms are sometimes at odds with equality and justice |
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Most countries today combine
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democracy and socialism
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Command economies
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aka centrally planned economy, the state is responisble for making all decisions in a command economy with espect to what goods and services the country produces, the quantity of their production, the prices at which they are sold, and the manner of their distribution. The state owns all productive wealth, land and capital, and the government allocates resources
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mixed economies
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exhibits features of both a market economy and a command economy combining state intervention and market mechanisms for achieving production and distribution
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market economies
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economic decisions are left to individuals and firms. Gov intervention is limited. They are closely asociated with capitalism, accordng to which the means of production are privately owned and operated
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Common Law
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(aka case law) is tradition, past practices, and legal precedents set ny the nations courts through interpretation of statues, legislation, and past ruling. The national legislature holds ultimate power in passing or amending laws
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Civil Law
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(aka code law)its origins go back to roman laws that have been "codified' -clearly written and accessible. Divides the legal system into three seperate codes: commercial, civil, and criminal
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Religious Law
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a legal system strongly influenced by religious beliefs, ethical codes, and moral values viewed as mandated by a supreme being
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Socialist Law
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Rights of the state are emphasized over those of the individual. Tend to view property and intellectual property rights more loosely
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Mixed systems
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refers to a variation of two or more legal systems operating together
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World trade Organization and the United Nations
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typical of international organizations that influence international business
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Special intrest groups
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serve the intrests of particular industries or country groupings, usually in pursuit of economic developent
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Confiscation
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seizure of foreign assets without compensation
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Expropriation
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seizure of corporate assets with compensation
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Special interest groups
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formed to serve the intrests of particular countries, industries, or causes and example would be the Organization for Economic Cooperation and Development whcih supports the economic developmental and business goals of advanced economies
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Competing Firms
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rival domestic firms with strong presence in the host country naturally have an interest in opposing the entry of foreign firms into the local market and may lobby their gov for protection
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Embargoes
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official bans on exports of specific products or specific modes of transport with particular countries. They are often used during wartime
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Sanctions
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type of ban on international trade, usually undertaken by a country, or a group of countries, against another judged to have jeopardized peace and security
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Boycotts
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an attempt to halt trade or business activities and are usually pursued for political reasons
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Terrorism
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the threat or actual use of force or violence to attian a political goal through fear, coercion, or intimidation
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nationalization
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denotes government takeover of not a firm but an entire industry, with or without compensation
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Marketing and distribution laws
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These laws influence the nature of international firms' promotion and advertising
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Laws regarding income repatriation
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restrict the transfer of profits back to the home country
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Enviornmental laws
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devised to combat practices that harm the natural enviornment
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International contracts
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vary around the world in both substance and enforcement. Internet and e-commerce regulations are relativel underdeveloped in most countries
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Antiboycott regulations
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prevent companies from participatiing in restrictive trade practices
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Ethical values and practices
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relate to the moral behavior of people, companies, and governments
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Corruption
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involves the use of illegal or unethical practices, such as bribery and fraud, to achieve business goals
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Succesful management
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requires developing an understanding of the political and legal contextx abroad
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