Mgt 498 - Chapters 1, 2, 4, & 5

Front 1

globalization

Back 1

shift toward a more integrated & interdependent world economy

Front 2

globalization of markets

Back 2

merging of historically distinct & separate national markets into one huge global marketplace

Front 3

globalization of production

Back 3

sourcing of goods & services from locations around the globe to take advantage of national differences in the cost & quality of factors of production

Front 4

factors of production

Back 4

labor, energy, land, & capital

Front 5

World Trade Organization

Back 5

primarily responsible for policing the world trading system & making sure nation-states adhere to the rules laid down in trade treaties signed by __________ member states

Front 6

International Monetary Fund

Back 6

-established to maintain order in the international monetary system
-often seen as the lender of last resort to nation-states whose economies are in turmoil & whose currencies are losing value against those of other nations

Front 7

World Bank

Back 7

set up to promote economic development

Front 8

United Nations

Back 8

51 countries committed to preserving peace through international cooperation & collective security

Front 9

G20tx

Back 9

-comprises the finance ministers & central bank governors of the 19 largest economies in the world, plus representatives from the European Union & the European Central Bank

Front 10

international trade

Back 10

occurs when a firm exports goods or services to consumers in another country

Front 11

foreign direct investment (FDI)

Back 11

occurs when a firm invests resources in business activities outside its home country

Front 12

Moore's Law

Back 12

predicts that the power of microprocessor technology doubles & its cost of production falls in half every 18 months

Front 13

stock of foreign direct investment

Back 13

refers to the total cumulative value of foreign investments

Front 14

multinational enterprise (MNE)

Back 14

any business that has productive activities in two or more countries

Front 15

international business

Back 15

any firm that engages in international trade or investment

Front 16

political economy

Back 16

term that stresses that the political, economic, & legal systems of a country are interdependent; they interact & influence each other, & in doing so they affect the level of economic well-being

Front 17

political system

Back 17

system of government in a nation

Front 18

collectivism

Back 18

refers to a political system that stresses the primacy of collective goals over individual goals

Front 19

socialists

Back 19

trace their intellectual roots to Karl Marx

Front 20

communists

Back 20

believed that socialism could be achieved only through violent revolution & totalitarian dictatorship

Front 21

social democrats

Back 21

committed themselves to achieving socialism by democratic means, turning their backs on violent revolution & dictatorship

Front 22

privatization

Back 22

process where parties sell state-owned enterprises to private investors

Front 23

individualism

Back 23

refers to a philosophy that an individual should have freedom in his/her economic & political pursuits

Front 24

democracy

Back 24

refers to a political system in which government is by the people, exercised either directly or through elected representatives

Front 25

totalitarianism

Back 25

form of government in which one person or political party exercises absolute control over all spheres of human life & prohibits opposing political parties

Front 26

representative democracy

Back 26

citizens periodically elect individuals to represent them

Front 27

communist totalitarianism

Back 27

version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship

Front 28

theocratic totalitarianism

Back 28

-found in states where political power is monopolized by a party, group, or individual that governs according to religious principles
-these states limit freedom of political & religious expression with laws based on Islamic principles

Front 29

tribal totalitarianism

Back 29

occurs when a political party that represents the interests of a particular tribe monopolizes power

Front 30

right-wing totalitarianism

Back 30

-gernerally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism
-overt hostility to socialist or communist ideas

Front 31

market economy

Back 31

all productive activities are privately owned, as opposed to being owned by the states

Front 32

command economy

Back 32

-government plans the goods & services that a country produces, the quantity in which they are produced, & the prices at which they are sold
-all businesses are state owned
-objective is for government to allocate resources for the "good of society"

Front 33

legal system

Back 33

refers to the rules, or laws, that regulate behavior along w/ the processes by which the laws are enforced & through which redress for grievances is obtained

Front 34

common law

Back 34

law based on tradition, precedent, & custom

Front 35

civil law system

Back 35

based on a detailed set of laws organized into codes

Front 36

theocratic law system

Back 36

system in which the law is based on religious teachings

Front 37

contract

Back 37

document that specifies the conditions under which an exchange is to occur & details the rights & obligations of the parties involved

Front 38

contract law

Back 38

body of law that governs contract enforcement

Front 39

United Nations Convention on Contracts for the International Sale of Goods (CIGS)

Back 39

establishes a uniform set of rules governing certain aspects of the making & performance of everday commercial contracts between sellers & buyers who have their places of business in different nations

Front 40

property rights

Back 40

refer to the legal rights over the use to which a resource is put & over the use made of any income that may be derived from that resource

Front 41

private action

Back 41

refers to theft, piracy, blackmail, & the like by private individuals or groups

Front 42

public action

Back 42

violation of property rights when public officials extort income, resources, or the property itself from property holders

Front 43

Foreign Corrupt Practices Act

Back 43

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes & other unethical actions

Front 44

intellectual property

Back 44

refers to property that is the product of intellectual activity, such as computer software, a screenplay, a music score, or the chemical formula for a new drug

Front 45

patent

Back 45

grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention

Front 46

copyrights

Back 46

the exclusive legal rights of authors, composers, playwrights, artists, & publishers to publish & disperse their work as they seek fit

Front 47

trademarks

Back 47

designs & names, often officially registered, by which merchants or manufacturers designate & differentiate their products

Front 48

World Intellectual Property Organization

Back 48

Group of 188 coutnries that have signed international treaties designed to protect intellectual property

Front 49

Paris Convention for the Protection of Industrial Property

Back 49

international agreement to protect intellectual property; signed by 96 countries

Front 50

product safety laws

Back 50

set certain safety standards to which a product must adhere

Front 51

product liability

Back 51

involves holding a firm & its officers responsible when a product causes injury, death, or damage

Front 52

cross-cultural literacy

Back 52

understanding of how cultural differences across & within nations can affect the way business is practiced

Front 53

culture

Back 53

system of values & norms that are shared among a group of people & that when taken together constitute a design for living

Front 54

values

Back 54

abstract ideas about what a group believes to be good, right, & desirable

Front 55

norms

Back 55

social rules & guidelines that prescribe appropriate behavior in particular situations

Front 56

society

Back 56

a group of people who share a common set of values & norms

Front 57

folkways

Back 57

the routine conventions of everyday life

Front 58

mores

Back 58

norms that are seen as central to the function of a society & to its social life

Front 59

social structure

Back 59

a society's basic social organization

Front 60

group

Back 60

an association of 2 or more individual who have a shared sense of identity & who interact w/ each other in structured ways on the basis of a common set of expectations about each other's behavior

Front 61

social strata

Back 61

hierarchical social categories

Front 62

social mobility

Back 62

extent to which individuals can move out of the strata into which they are born

Front 63

caste system

Back 63

closed system of stratification in which social position is determined by the family into which a person is born, & change in that position is usually not possible during an individual's lifetime

Front 64

class system

Back 64

-less rigid form of social stratification in which social mobility is possible
-form of open stratification in which the position a person has by birth can be changed through his/her own achievements or luck

Front 65

class consciousness

Back 65

refers to a condition where people tend to perceive themselves in terms of their class background, & this shapes their relationships w/ members of other clasess

Front 66

religion

Back 66

a system of shared beliefs & rituals that are concerned w/ the realm of the sacred

Front 67

ethical systems

Back 67

refer to a set of moral principles, or values, that are used to guide & shape behavior

Front 68

power distance

Back 68

one of Hofstede's dimensions that focuses on how a society deals w/ the fact that people are unequal in physical & intellectual capabilities

Front 69

individualism versus collectivism

Back 69

one of Hofstede's dimensions that focuses on the relationship between the individual & his/her fellows

Front 70

uncertainty avoidance

Back 70

one of Hofstede's dimensions that measures the extent to which different cultures socialize their members into accepting ambiguous situations & tolerate uncertainty

Front 71

masculinity vesus femininity

Back 71

one of Hofstede's dimensions that looks at the relationship between gender & work roles

Front 72

Confucian dyanism

Back 72

theory that Confucian teachings affect attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, & reciprocation of gifts & favors

Front 73

ethnocentrism

Back 73

belief in the superiority of one's own ethnic group or culture

Front 74

business ethics

Back 74

accepted principles of right or wrong governing the doncudct of business-people

Front 75

ethical strategy

Back 75

strategy, or course of action, that does not violate thhe accepted rpinciples of right or wrong governing the conduct of business-people

Front 76

Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

Back 76

OECD agreement to make the bribery of foreign public officials a criminal offense

Front 77

social responsiblity

Back 77

the idea that businesspeople should consider the social consequences of economic actions when making business decisions, & that there should be a presumption in favor of decisions that have both good economic & social consequences

Front 78

ethical dilemmas

Back 78

situations in which none of the available alternatives seem ethically acceptable

Front 79

organization culture

Back 79

refers to the values & norms that are shared among employees of an organization

Front 80

cultural relativism

Back 80

belief that ethics are nothing more than the reflection of a culture & that accordingly, a firm should adopt the ethics of the culture in which it is operating

Front 81

righteous moralist

Back 81

approach that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries

Front 82

naive immoralist

Back 82

asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either

Front 83

Utilitarian approaches

Back 83

hold that the moral worth of actions or practices is determined by their consequences

Front 84

Kantian ethics

Back 84

people should be treated as ends & never purely as means to the ends of others

Front 85

rights theories

Back 85

recognize that human beings have fundamental rights & privileges that transcend national boundaries & cultures

Front 86

Universal Declaration of Human Rights

Back 86

an agreement that establishes basic principles that should be adhered to irrespective of the culture

Front 87

just distribution

Back 87

one that is considered fair & equitable

Front 88

code of ethics

Back 88

formal statement of the ethical priorities a business adheres to

Front 89

stakeholders

Back 89

individuals or groups that have an interest, claim, or stake in the company, in what it does, & in how well it performs

Front 90

internal stakeholders

Back 90

-individuals or groups who work for or own the business
-all employees, the board of directors, & stockholders

Front 91

external stakeholders

Back 91

-all other individuals & groups that have some claim on the firm
-customers, suppliers, lenders, governments, unions, local communities, & the general public