Ibus Test 1

Front 1

multinational enterprise

Back 1

a firm that engages in foreign direct investments and operates in multiple countries

Front 2

foreign direct investment

Back 2

investments in controlling and managing value-added activities in other countries

Front 3

emerging economies

Back 3

a term that has gradually replaced the term developing countries since the 19990s

Front 4

gross domestic product

Back 4

the sum of value added by resident firms households and governments operating in an economy

Front 5

purchasing power parity

Back 5

a conversion that determines the equivalent amount of goods and services different currencies can purchase used to capture the differences in cost of living

Front 6

expatriate manager

Back 6

manager who works abroad

Front 7

gross national product

Back 7

gross domestic product plus income from nonresident sources abroad

Front 8

gross national income

Back 8

gdp plus income from non resident sources abroad. GNI is the term used by the world bank and other international organizations

Front 9

triad

Back 9

3 regions of developed economies
North America
Western Europe and Japan

Front 10

international premium

Back 10

a significant pay raise commanded by expats when working overseas

Front 11

institution-based view

Back 11

formal and informal rules of the game

Front 12

resource-based view

Back 12

firm-specific resources and capabilities

Front 13

What determines the success and failure of firms around the globe?

Back 13

institution based or
resource based

Front 14

liability of foreignness

Back 14

the inherent disadvantage that foreign firms experience in host countries because of their nonnative status

Front 15

globalizatoin

Back 15

the close integration of countries and people of the world

Front 16

Bric

Back 16

Brazil
Russia
India
China
-emerging economies

Front 17

semi-globalization

Back 17

a perspective that suggests that barriers to market integration at borders are high but not high enough to completely insulate countries from each other

Front 18

institutions

Back 18

formal and informal rules of the game

Front 19

institution-based view

Back 19

suggests that firm performance is at least in part determined by the institutional frameworks governing firm behavior around the world

Front 20

formal institutions

Back 20

institutions represented by laws regulations and rules

Front 21

regulatory pillar

Back 21

the coercive power of governments

Front 22

informal institutions

Back 22

institutions represented by norms cultures and ethics

Front 23

normative pillar

Back 23

the mechanism through which norms influence individual and firm behavior

Front 24

cognitive pillar

Back 24

the internalized taken-for-granted values and beliefs that guide individual and firm behavior

Front 25

transaction costs

Back 25

the costs associated watch economic transactions-- or more broadly costs of doing business

Front 26

opportunism

Back 26

self-interest seeking with guile

Front 27

legal system

Back 27

the rules of the game on how a country's laws are enacted and enforced

Front 28

civil law

Back 28

a legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments

Front 29

common law

Back 29

a legal tradition that is shaped by precedents and traditions from previous judicial decisions.

Front 30

theocratic law

Back 30

a legal system based on religious teachings
iran saudi arabia

Front 31

property rights

Back 31

the legal rights to use an economic property and to derive income and benefits form it

Front 32

intellectual property

Back 32

intangible property that results from intellectual activity

Front 33

intellectual property rights

Back 33

rights associated with the ownership of intellectual property

Front 34

patents

Back 34

legal rights awarded by government autoritites to inventors of new products or processes who are given exclusive rights to derive income from such inventions through activities such as manufacturing licensing and selling

Front 35

copyrights

Back 35

exclusive legal rights of authors and publishers to publish and disseminate their work

Front 36

trademarks

Back 36

legal rights of firms to use exclusive specific names brands and designs to differentiate their products from others

Front 37

piracy

Back 37

the unauthorized use of intellectual property rights

Front 38

economic system

Back 38

rules of the game on how a country is governed economically

Front 39

market economy

Back 39

an economy that is characterized by the invisible hand of market forces

Front 40

command economy

Back 40

all factors of production are government owned and controlled and all supply demand and pricing re planned by the government

Front 41

mixed economy

Back 41

that has elements of both a market economy and command economy

Front 42

market transition debate

Back 42

how to make the transition to a market economy work in most effective and least disruptive way

Front 43

path dependency

Back 43

the present choices of countries firms and individuals are constrained by the choices made previously

Front 44

culture

Back 44

the collective programming of the mind that distinguishes the member of one group or category of people from another

Front 45

lingua franca

Back 45

the dominance of one language as a global business language

Front 46

context

Back 46

the underlying background upon which interaction takes place

Front 47

low context culture

Back 47

a culture in which communication is usually taken at face value without much reliance on unspoken context

Front 48

cluster

Back 48

countries that share similar cultures together

Front 49

civilization

Back 49

the highest cultural grouping of people and the broadest level of cultural identity people have

Front 50

power distance

Back 50

the extent to which less powerful members with in a country expect and accept that power is distributed unequally

Front 51

individualism

Back 51

the perspective that the identity of an individual is fundamentally his or her own

Front 52

collectivism

Back 52

the idea that the identity of an individual is primarily based on the identity of his or her collective group

Front 53

masculinity

Back 53

a relatively strong form of societal level sex role differentiation whereby men tend to have occupations that reward assertiveness and women tend to work in caring professions

Front 54

femininity

Back 54

a reatively weak form of societal level sex role differentiation whereby more women occupy positions that reward assertiveness and more men work in caring professions

Front 55

uncertainty avoidance

Back 55

the extent to which members in different cultures accept ambiguous situations and tolerate uncertainty

Front 56

long-term orientation

Back 56

a perspective that emphasizes perseverance and savings for future betterment

Front 57

ethics

Back 57

a set of guidelines for making ethical decisions

Front 58

code of conduct

Back 58

a set of guidelines for making ethical decisions

Front 59

ethical relativism

Back 59

a perspective that suggests that all ethical standards are relative

Front 60

ethical imperialism

Back 60

the absolute belief that there is only one set of ethics and we have it!

Front 61

corruption

Back 61

the abuse of public power for private benefits usually in the form of bribery

Front 62

foreign corrupt practices act

Back 62

a us law enacted in 1977 that bans bribery to foreign officials

Front 63

norms

Back 63

prevailing practices of relevant players that affect the focal individuals and firms

Front 64

in-group

Back 64

individuals and firms regarded as part of us

Front 65

out-group

Back 65

individuals and firms not regarded as part of us

Front 66

cultural intelligence

Back 66

an individuals ability to understand and adjust to new cultures

Front 67

resources

Back 67

the tangible and intangible assets a firm uses to choose and implement its strategies

Front 68

capability

Back 68

the tangible and intangible assets a firm uses to choose and implement its strategies

Front 69

tangible resources and capabilities

Back 69

assets that are observable and easily quantified

Front 70

intangible resources and capabilities

Back 70

assets that are hard to observe and difficult to quantify

Front 71

innovation resources and capabilities

Back 71

1. research and develop new products and services
2 innovate and change ways of organizing

Front 72

reputational resources and capabilities

Back 72

-outcome of competitive process

Front 73

value chain

Back 73

a chain of vertical activities used in the production of goods and services that add value

Front 74

benchmarking

Back 74

an examination as to whether a firm has resources and capabilities to perform and particular activity in a manner superior to competitors

Front 75

commoditization

Back 75

a process of market competitionthorugh which unique products that command high prices and high margins gradually lose their ability to do these products thus become commodities

Front 76

out sourcing

Back 76

turning over an organizational activity to an outside supplier that will perform it on behalf of the local firm

Front 77

offshoring

Back 77

outsourcing to an international foreign firm

Front 78

inshoring

Back 78

outsourcing to domestic firm

Front 79

captive sourcing

Back 79

setting up subsidiaries abroad the work done is in house but the location is foreign also known ask foreign direct investment

Front 80

VRIO framework

Back 80

value
rarity
imitability
organizational

Front 81

casual ambiguity

Back 81

the difficulty of identifying the causal determinants of successful firm performance

Front 82

complementary assets

Back 82

the combination of numerous resources and assets that enable a firm to gain a competitive advantage

Front 83

social complexity

Back 83

refers to the socially complex ways of organizing typical of many firms

Front 84

oem

Back 84

firm that executes the design blueprints of provided by other firms

Front 85

odm

Back 85

a firm that both designs and manufactures products

Front 86

obm

Back 86

a firm that designs manufactures and markets branded products

Front 87

institutions ---- transaction costs

Back 87

lower

Front 88

a rule must rest on ---- pillars to be effective

Back 88

2

Front 89

political risk

Back 89

risk associated with political changes that may negatively impact domestic and foreign firms

Front 90

what drives economic development

Back 90

culture, geography or institutions

Front 91

contracts are more specific under

Back 91

... civil law

Front 92

rules reduce...

Back 92

opportunism

Front 93

political risks ex

Back 93

gov seizures of assets
embargoes and sanctions
boycotts, revolution, terrorism, hostage taking

Front 94

political strategies

Back 94

voice: lobbying
exit: relocating value added activities

Front 95

corporatist

Back 95

close ties between gov and corporate elite ... more gov interaction

Front 96

pluralist

Back 96

large number of interests exist with equal access to policy makers, gov is relatively neutral

Front 97

dimensions approach

Back 97

hofstede 5 dimensions
power distance, individualism, masculinity, uncertainty avoidance, long term orientation

Front 98

strategic responses to norms

Back 98

reactive
defensive
accommodative
proactive

Front 99

convergence vs divergence

Back 99

divergence is a deep rooted norm
internet--> convergence

Front 100

cultural intelligence steps

Back 100

awareness
knowledge
skills

Front 101

mercantilism

Back 101

countries competing for world market share

Front 102

how to identify resources and capabilities

Back 102

Vrio
corporate value chains- horizontal integration
swot

Front 103

reasons to go abroad

Back 103

1 to exploit existing resources
2 to gain new resources

Front 104

economies of scale

Back 104

per unit cost decreases and volume increases