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89 Cards in this Set
- Front
- Back
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International Business
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Business transactions between parties from more than one country.
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Just-In-Time (JIT) Systems
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Suppliers are expected to deliver necessary inputs just as they are needed.
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Exporting
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The selling of products made in one's own country for the use or resale in other countries.
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Importing
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The buying of products made in another country for the use or resale in one's own country.
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International Investments
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Capital supplied by residents of one country to residents of another.
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Foreign Direct Investments (FDI)
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Investments made for the purpose of actively controlling property, assets, or companies located in host countries.
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Home Country
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The country in which the parent company's headquarters is located.
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Host Country
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Any other country in which the company operates.
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Foreign Portfolio Investments (FPI)
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Purchases of foreign financial assets for a purpose other than control. (stocks, bonds, and cert. of dep.)
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International Licensing
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Contractual arrangement in which a firm in one country licenses the use of its intellectual property (patents, trademarks, brand names) in return for royalty payment.
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International Franchising
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A special form of international licensing in which a firm in one country allows a firm in another country to use its operating systems as well as its intellectual property.
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Multinational Corporation (MNC)
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Used to identify firms that have extensive involvement in international business.
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Globalization
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The integration of markets, nation-states, enabling everyone to reach around the world farther, faster, and cheaper than ever before.
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Core Competency
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A distinctive strength or advantage that is central to a firm's operations.
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Emerging Markets
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Countries whose recent growth or prospects for future growth exceed that of traditional markets.
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Invoicing Currency
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The currency in which the sale of goods and services is denominated.
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Flight Capital
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Money sent out of a politically or economically unstable country to one perceived as a safe haven.
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Commonwealth of Independent States
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A forum to discuss issues of mutual concern.
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Keiretsu
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Large families of interrelated companies.
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Sogo Shosha
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An export trading company, to market their exports worldwide. (typically a keiretsu member)
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Chaebol
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Large, conglomerate family-controlled firms of South Korea characterized by strong ties with government agencies.
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Reexporting
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Importing foreign goods, then reexporting them to another country.
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Import Substitution
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A country attempts to stimulate the development of local industries by discouraging imports.
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Export Promotion
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A country pursues economic growth by expanding its exports.
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Who are the 'Four Tigers'?
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South Korea
Taiwan Singapore Hong Kong |
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Common Law
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Based on the cumulative wisdom of judges' decisions on individual cases through history.
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Civil Law
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A detailed listing of what is and is not permissible.
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Religious Law
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Based on the officially established rules governing the faith and practice of a particular religion.
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Theocracy
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A country that applies religious law to civil and criminal conduct.
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Bureaucratic Law
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Whatever the country's bureaucrats say it is, regardless of the formal law of the land.
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Sanction
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Restraint against commerce with a specific country.
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Embargo
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A comprehensive sanction against all commerce with a given country.
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Extraterritoriality
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A country's attempt to regulate business activities that are conducted outside their borders.
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Nationalization
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A transfer of ownership of resources from the private to the public sector.
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Expropriation
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When the host government compensates the private owners for their losses.
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Confiscation
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When the host government offers no compensation.
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Privatization
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The conversion of state-owned property to privately owned property.
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Repatriate
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Return to the home country.
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Principle of Comity
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Says a country must honor and enforce within its own territory the judgments of foreign courts.
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Arbitration
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Both parties of a conflict agree to submit their cases to a private individual whose decision they will honor.
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Foreign Sovereign Immunities Act of 1976
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Provides that the actions of foreign governments against US firms are generally beyond the jurisdiction of US courts.
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Technology Transfer
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The transmittal of technology from one country to another.
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Accounting Reserves
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Accounts created in a firm's financial reports to record foreseeable future expenses that might affect its operations.
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Political Risk Assessment
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A systematic analysis of the political risks faced in foreign countries.
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Political Risks
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Any changes in the political environment that may adversely affect the value of a firm's business activities.
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Macro-political Risk
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Affects all firms in a country.
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Micro-political Risk
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Affects only a specific firm or firms within a specific industry.
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Culture
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The collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another.
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5 Elements of Culture
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Values and Attitudes
Social Structure Language Communication Religion |
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Social Mobility
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The ability of individuals to move from one stratum of society to another.
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Social Stratification
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Categorization by birth, occupation, educational achievements, etc.
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Lingua Franca
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Common language.
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Back-translation
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One person translates a document, then another person translates the translated document back into the original language.
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Low-context Culture
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The words a speaker uses explicitly convey the speaker's message.
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High-context Culture
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The context in which a conversation occurs is just as important as the words that are actually spoken.
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Cultural Cluster
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Comprises countries that share many cultural similarities, although differences do remain.
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Greenfield Investment
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A brand new investment.
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Social Orientation
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A person's beliefs about the relative importance of the individual and the groups to which that person belongs.
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2 Extremes of Social Orientation
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Individualism
Collectivism |
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Individualism
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The cultural belief that the person comes first.
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Collectivism
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The belief that the group comes first.
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Power Orientation
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Refers to the beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations.
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Power Respect
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People in a culture tend to accept the power and authority of their superiors simply because of their higher position.
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Power Tolerance
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People attach much less significance to a person's position in the hierarchy.
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Goal Orientation
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The manner in which people are motivated to work toward different kinds of goals.
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Aggressive Goal Behavior
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Tends to place a high premium on material possessions, money, and assertiveness.
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Passive Goal Behavior
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Tends to place a higher value on social relationships, quality of life, and concern for others.
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Time Orientation
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The extent to which members of a culture adopt a long-term vs. short-term outlook on life, work, and other aspects of society.
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Cultural Convergence
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People are able to get a taste of what cultures from other parts of the world are like.
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Self-reference Criterion
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The unconscious use of one's own culture to help assess new surroundings.
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Cross-cultural Literacy
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One must be able to behave according to the rules of the culture at hand.
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Acculturation
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The process by which people not only understand a foreign culture but also modify their own behavior to make it more compatible.
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Ethics
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An individual's personal beliefs about whether a decision, behavior, or action is right or wrong.
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Values
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The things a person feels to be important.
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Code of Ethics
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Written statements of the values and ethical standards that guide a firms' actions.
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Social Responsibility
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The set of obligations an organization undertakes to protect and enhance the society in which it functions.
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Organizational Stakeholders
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The people and organizations that are directly affected by the practices of an organization and that have a stake in its performance.
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Obstructionist Stance
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Usually do as little as possible to address social or environmental problems.
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Defensive Stance
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The organization will do everything that is required of it legally but nothing more.
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Accommodative Stance
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Meets its legal and ethical responsibilities, but will also go beyond these requirements in specific cases.
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Proactive Stance
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Will take to heart the arguments in favor of social responsibility.
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Legal Compliance
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The extent to which the organization conforms to regional, national, and international laws.
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Ethical Compliance
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The extent to which the members of the organization follow basic ethical standards of behavior.
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Philanthropic Giving
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The awarding of funds or gifts to charities or other social programs.
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Whistle-blowing
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The disclosure by an employee of illegal or unethical conduct on part of others within the organization.
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Corporate Social Audit
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A formal and thorough analysis of the effectiveness of the firm's social performance.
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Foreign Corrupt Practices Act (FCPA)
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Prohibits US firms and all associated with them from offering bribes to any foreign government official.
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Alien Tort Claims Act
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Allows foreign victims of human rights abuses to sue perpetrators in the United States.
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International Labor Organization (ILO)
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A watchdog for monitoring working conditions in factories in developing countries.
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