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72 Cards in this Set
- Front
- Back
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Political Theory |
System of government in a nation. Degree of collectivism vs individualism Degree of totalitarianism vs democracy |
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Collectivism |
Value the collective goals of society more than individual rights. Often sacrificed. |
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Socialism |
(Marx) political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community. 2 main types |
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Communism |
Type of socialism where they believe it can only be achieved through violent revolution and totalitarian dictatorship. |
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Social Democracy |
State owned enterprises run for public food rather than private profit. More government intervention. |
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Individualism |
Direct opposite of collectivism. We value all choices on an individual level. |
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Totalitarianism |
One person/party exercises absolute control over all spheres of human life. (Competing parties are banned) 4 main types |
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Communist Totalitarianism |
North Korea |
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Theocratic Totalitarianism |
Iran |
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Tribal Totalitarianism |
Central African tribes |
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Right Wing Totalitarianism |
Fascist dictatorship |
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Economic Theory |
Political ideology and economic systems are connected. |
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Economic systems |
1. Market economy 2. Command economy 3. Mixed economy |
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Capitalism |
Based on pure market economy. Greed works. Most efficient allocation of resources. Supply must not be restricted by monopolies. Government encourages free and fair competition. |
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Command economy |
Everything is controlled by the government; price, quantity, goods and services. All businesses are state owned. |
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Mixed Economy |
Some elements of market economy and command economy. |
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In the last 10-20 years we have gone away from ... to ... |
Command economies Capitalism Transfer ownership from public to private. |
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Legal thoery |
The legal system of a country refers to the rules or laws that regulate behavior. |
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Common Law |
Based on tradition, precedent, and custom. Great Britain’s former colonies including the US. Less dependent on statutes and codes. |
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Civil Law |
Based on detailed set of laws organized into codes. -over 80 countries including Germany, France, Japan, and Russia |
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Theoretical Law |
Based on religious teachings. -Islamic is the most widely practiced. Can be used for political. |
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Rule of Law |
Decisions should be made applying known principles. -Law above individuals |
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Contracts |
Offer and acceptance. -written Or -verbal |
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Types of contracts |
State Court level Federal Court level No international legal system. -within the contract you say specifically which country will impose the law. |
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Corruption |
Theft, piracy, blackmail, extortion, confiscation, etc. |
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U.S. Foreign Corrupt Practices Act |
Not allowed to bribe any officials of other countries. |
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Intellectual Property |
Patents Copyright Trademarks The protection is very different country to country. |
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Patent |
Give the inventor exclusive rights, so others cannot copy it. |
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Cooyright |
Exclusive legal rights of authors, composers, play writers, artists, and publishers. |
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Trademark |
Registered designs and names. |
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Product Safety Laws |
Certain safety standards to which a product must adhere. |
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Product Liability |
Holds firms and officers liable if their product causes harm, injury, or death. |
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GDP |
Gross Domestic Product -measure of nations total economic activity. |
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GNP |
GDP + income from foreign investments |
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GNI |
Gross national income Measures GNP per capita. |
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PPP |
Purchasing Power Parity |
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Market Economy |
High economic freedom, have high economic growth and richer citizens. Hong Kong, Switzerland, Singapore, US, Canada, Germany |
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Hernando de Soto |
Developing world will not benefit from capitalism until property rights are better defined and protected. |
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Cornerstone of a healthy economy: |
Legal rights and protection |
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Democratic |
Regimes tend to be more conducive to long-term economic growth than democracies. |
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Geography |
Favorable facilities trade that can promote growth. |
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Education Levels |
Investment in education promotes economic growth. |
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... is a consequence of economic growth. |
Democracy |
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Since ... there have been many democratic revolutions. |
The 1980s |
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3 Keys to economic transformation |
1. Deregulation 2. Privatization 3. Legal Systems |
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Terrorism |
International and domestic. Use violence to promote political agenda. |
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Nationalism |
Think your country is the best. |
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Currencies are ... |
Constantly changing. |
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Culture |
Values and norms that are shared amongst a group. |
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Values |
Shared assumptions/ideals |
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Norms |
Societal rules/ appropriate behavior |
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Cross-cultural Literacy |
An understanding of how theses differences affect business practices. |
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Culture = |
Code of conduct |
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Society |
People who are bound together by a common culture; some have different cultures. |
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Nation-States |
Physical borders, but may have multiple cultures. |
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Western Ideals |
-individualism achievement -entrepreneurship promoted -higher turnover in jobs |
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Non-Western Ideals |
-cooperation and team work -life time employment common -very loyal to company -individualism and creativity may be suppressed. |
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Social categories, social strata |
Defined by characteristics, family, background, occupation, income |
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What is the primary reason why international ventures fail? |
Cultural insensitivity or ignorance. |
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Religion |
A system of shared beliefs and rituals that are concerned with the realm of the sacred. |
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Ethical System |
A set of moral principles, or values, that are used to guide and shape behavior. |
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Non-verbal Language |
Time flexibility and sensibility, social acquaintance and rapport, personal physical space, personal touching, eye contact. Can be misunderstood due to interpretation. |
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Hofstede’s Cultural Dimensions |
1. Individual vs consensus (I vs we) 2. Power distance 3. Uncertainty avoidance 4. Masculinity vs femininity 5. Long-term vs short-term orientation |
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Power vs Distance |
Do the lower members of a hierarchy accept power is distributed unequally? |
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Individualism vs collectivism |
Getting ahead, entrepreneur mentality vs groups and community |
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Uncertainty Avoidance |
Tolerance of ambiguity |
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Masculinity vs femininity |
Cooperation ( feminine) Assertiveness (masculine) |
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Long vs short term orientation |
How far into the future? |
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Friedman Doctrine |
The only social responsibility of business is to increase profits, so long as the company stays within the law. |
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Cultural Realitivism |
Ethics are culturally determined and firms should adopt the ethics of the cultures in which they operate. |
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Righteous Moralist |
An MNE’s home country standard of ethics are the appropriate ones for companies to follow. |
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Sustainable Strategies |
Operating in a socially responsible manner. Can be good for shareholders, environment, local communities, employees and customers. |
