Vocab Ch. 1-5 Ib

Front 1

Globalization

Back 1

trend away from distinct national economic units and toward one huge global market.

Front 2

Globalization of markets

Back 2

moving away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, and toward a system in which national markets are merging into one global market.

Front 3

Globalization of production

Back 3

trend by individual firms to disperse parts of the productive processes to different locations around the globe to take advantage of national differences in the cost and quality of factors of production.

Front 4

Factors of production

Back 4

inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how.

Front 5

GATT

Back 5

international treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO.

Front 6

WTO

Back 6

organization that succeeded the GATT as a result of the successful completion of the Uruguay Round of GATT negotiations.

Front 7

IMF

Back 7

International institution set up to maintain order in the international monetary system. (more of a lender of last resort to nation-states whose economies are in turmoil)

Front 8

International Trade

Back 8

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

Front 9

Foreign Direct Investment

Back 9

Direct investment in business operations in a foreign country.

Front 10

Moore's Law

Back 10

the power of microprocessors and their technology increases while the cost of production falls in half every 18 months.

Front 11

Stock of FDI

Back 11

The total cumulative value of foreign-owned assets at a given time.

Front 12

Multinational Enterpritise

Back 12

A firm that owns business operations in more than one country.

Front 13

International Business

Back 13

Any firm that engage in international trade or investment.

Front 14

Political Economy

Back 14

the political, economic, and legal systems of a country.

Front 15

Political system

Back 15

system of government in a nation.

Front 16

Collectivism

Back 16

a political system that emphasizes collective goals over individual ones.

Front 17

Socialism

Back 17

a political philosophy advocating substantial public involvement, through government ownership, in the means of production and distribution.

Front 18

Communists

Back 18

socialism can be achieved only through revolution and totalitarian dictatorship.

Front 19

Social Democrats

Back 19

committed to achieving socialism by democratic means,

Front 20

Privatization

Back 20

the sale of state-owned enterprises to private investors.

Front 21

Individualism

Back 21

an emphasis on the importance of guaranteeing individual freedom and self-expression.

Front 22

Democracy

Back 22

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

Front 23

Totalitarianism

Back 23

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

Front 24

Representative Democracy

Back 24

a political system in which citizens periodically elect individuals to represent them.

Front 25

Communist Totalitarianism

Back 25

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

Front 26

Theocratic Totalitarianism

Back 26

a political system in which political power is monopolized by a party, group, or individual that governs according to religious principles.

Front 27

Tribal totalitarianism

Back 27

a political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power.

Front 28

Right-Wing Totalitarianism

Back 28

a political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom, including free speech, frequently on the grounds that it would lead to the rise of communism.

Front 29

Market Economy

Back 29

an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced.

Front 30

Command Economy

Back 30

an economic system in which the government plans the goods and services that a country produces, the quantity in which they are produced and the prices at which they are sold.

Front 31

Legal System

Back 31

system of rules that regulate behavior and the processes by which the laws are enforced and through which redress of grievances is obtained.

Front 32

Common Law

Back 32

a system of law based on tradition, precedent, and custom.

Front 33

Civil Law System

Back 33

a system of law based on a detailed set of written laws and codes.

Front 34

Theocratic Law System

Back 34

a system of law based on religious teachings.

Front 35

Contract

Back 35

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

Front 36

Contract Law

Back 36

the body of law that governs contract enforcement.

Front 37

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

Back 37

a set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of business in different nations.

Front 38

Property Rights

Back 38

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

Front 39

Private Action

Back 39

the theft, piracy, blackmail, and the like by private individuals or groups.

Front 40

Public Action

Back 40

the extortion of income of resources of property holders by public officials, such as politicians and government bureaucrats.

Front 41

Foreign Corrupt Practices Act

Back 41

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

Front 42

Intellectual Property

Back 42

products of the mind such as computer software, a screenplay, a music score, or the chemical formula for a new drug; can be protected by patents, copyrights, and trademarks.

Front 43

Patent

Back 43

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 44

Copyright

Back 44

the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

Front 45

Trademark

Back 45

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

Front 46

World Intellectual Property Organization

Back 46

an international organization whose members sign treaties designed to protect intellectual property.

Front 47

Paris Convention for the Protection of Industrial Property

Back 47

international agreement to protect intellectual property; dates to 1883 and has been signed by some 170 nations.

Front 48

Product Safety Laws

Back 48

set certain safety standards to which a product must adhere.

Front 49

Product Liability

Back 49

involved holding a firm and its officers responsible when a product causes injury, death, or damage.

Front 50

Gross National Income (GNI)

Back 50

the yardstick for measuring the economic activity of a country; it measures the total annual income received by a nation's residents.

Front 51

Purchasing Power Parity (PPP)

Back 51

an adjustment in gross domestic product per capita to reflect differences in the cost of living.

Front 52

Human Development Index (HDI)

Back 52

an attempt by the UN to assess the impact of a number of factors on the quality of human life in a country.

Front 53

Innovation

Back 53

development of new products, processes, organizations, management practices, and strategies.

Front 54

Entrepreneurs

Back 54

those who first commercialize innovations.

Front 55

Deregulation

Back 55

removal of government restrictions concerning the conduct of business.

Front 56

First-Mover Advantages

Back 56

advantages that accrue to the first to enter a market.

Front 57

Late-Mover Disadvantages

Back 57

handicaps experienced by being a late entrant into a market.

Front 58

Political Risk

Back 58

the likelihood that political forces will cause drastic changes in a country's business environment that will adversely affect the profit and other goals of a business enterprise.

Front 59

Economic Risk

Back 59

the likelihood that events, including economic mismanagement, will cause drastic changes in a country's business environment that hurt the profit and other goals of a particular business enterprise.

Front 60

Legal Risk

Back 60

the likelihood that a trading partner will opportunistically break a contract or expropriate property rights.

Front 61

United Nations

Back 61

an international organization made up of 191 countries and headquartered in NYC, formed in 1945 to promote peace, security, and cooperation.

Front 62

Cross-cultural Literacy

Back 62

An understanding of how cultural differences across and within nations can affect the way business is practiced.

Front 63

Culture

Back 63

A system of value and norms that are shared among a group of people and that when taken together constitute a design for living

Front 64

Values

Back 64

Abstract ideas about what a group believes to be good, right, and desirable.

Front 65

Norms

Back 65

Social rules and guideline that prescribe appropriate behavior in particular situations

Front 66

Society

Back 66

A group of people who share a common set of values and norms

Front 67

Folkways

Back 67

Routine conventions of everyday life

Front 68

Mores

Back 68

Norms that are seen as central to the functioning of society and to its social life

Front 69

Social structure

Back 69

The basic social organization of a society

Front 70

Group

Back 70

An association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other's behavior

Front 71

Social Strata

Back 71

Hierarchical social categories often based on family background, occupation, and income.

Front 72

Social Mobility

Back 72

The extent to which individuals can move out of the state into which they are born.

Front 73

Caste System

Back 73

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

Front 74

Class system

Back 74

A system of social stratification in which the position a person has by birth can be changed through his or her own achievements or luck.

Front 75

Class-consciousness

Back 75

A tendency for people to perceive themselves in terms of their class background

Front 76

Religion

Back 76

A system of shared beliefs and rituals that are concerned with the realm of the sacred.

Front 77

Ethical System

Back 77

A set of moral principles, or values, that are used to guide and shape behavior

Front 78

Power Distance

Back 78

Theory of how a society deals with the fact that people are unequal in physical and intellectual capabilities. High power distance cultures are found in countries that let inequalities grow over time into inequalities of power and wealth. Low power distance cultures are found in societies that try to play down such inequalities as much as possible.

Front 79

Individualism vs. Collectivism

Back 79

Theory focusing on the relationship between the individual and his or her fellows; in individualistic societies, the ties between individuals are loose and individual achievement and freedom are highly valued; in societies where collectivism is emphasized, the ties between individuals are tight; people are born into collectives, such as extended families, and everyone is supposed to look after the interests of the collective.

Front 80

Uncertainty Avoidance

Back 80

Extent to which different cultures socialize their members into accepting ambiguous situations and tolerating uncertainty.

Front 81

Masculinity vs. Femininity

Back 81

Theory of the relationship between gender and work roles. In masculine cultures, sex roles are sharply differentiated and traditional "masculine values," such as achievement and the effective exercise of power, determine cultural ideas; in feminine cultures, sex roles are less sharply distinguished, and little differentiation is made between men and women in the same job.

Front 82

Confucian Dynamism

Back 82

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

Front 83

Ethnocentrism

Back 83

A belief in the superiority of one's own ethnic group or culture; often results in disregard or contempt for the culture of the other countries.

Front 84

business ethics

Back 84

the accepted principles of right or wrong governing the conduct of businesspeople

Front 85

ethical strategy

Back 85

a strategy or course of action, that does not violate the accepted principles of right or wrong governing the conduct of businesspeople

Front 86

foreign corrupt practices act

Back 86

a U.S. law regulating begavior regarding the conduct of international business in the taking of bribes and other unethical actions

Front 87

facilitating payments

Back 87

payments to ensure that the business is receiving the same treatment that a business ought to receive from a government, NOT a bribe or for preferential treatment

Front 88

convention on combating bribery of foreign public officials in international business transactions

Back 88

Organization for the Economic Coordination and Development (OECD) convention that obliges member states to make the bribery of foreign officials a criminal offense

Front 89

social responsibilty

Back 89

the idea that businesspeople should consider the social consequences of economic actions when making business decisions

Front 90

ethical dilemma

Back 90

a situation in which none of the available alternative seems ethically acceptable

Front 91

organization culture

Back 91

the values and norms shared among an organization's employees

Front 92

cultural relativism

Back 92

the belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate

Front 93

righteous moralism

Back 93

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

Front 94

Naive Immoralism

Back 94

the belief that if a manager of a multinational sees that firms from ther nations are not following ethical norms in a host nation, that managers hsould not either

Front 95

utilitarian approaches

Back 95

these approaches to ethics hold that that the moral worth of actions or practices is determined by their consequences. Try to get the most beneficial for the majority of people

Front 96

kantian ethics

Back 96

the belief that people should be treated as ends and never as means to the ends of others

Front 97

rights theories

Back 97

twentieth century theories that recognize human beings have fundamental rights and privileges that transcend national boundaries and cultures

Front 98

Universal Declaration of Human Rights

Back 98

A UN document that lays down the basic principles of human rights that should always be adhered to.

Front 99

Just Distribution

Back 99

A distribution of economic goods and services that is considered fair and equitable

Front 100

code of ethics

Back 100

a business's formal statement of ethical policies

Front 101

stakeholders

Back 101

the individuals or groups that have an interest, stake or claim in the actions and overall performance of a company

Front 102

internal stakeholderS

Back 102

people who work for or own the business, such as employees, directors and stockholders

Front 103

external stakeholders

Back 103

the individuals and groups that have some claim on the firm, such as customers, suppliers, and unions

Front 104

free trade

Back 104

the absence of government barriers to the free flow of goods and services between countries

Front 105

New Trade Theory

Back 105

Theory that sometimes countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms

Front 106

mercantilism

Back 106

an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports

Front 107

zero-sum game

Back 107

a situation in which an economic gain by one country results in an economic loss by another

Front 108

absolute advantage

Back 108

a country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it

Front 109

constant returns to specialization

Back 109

the units of resources required to produce a good are assumed to remain constant no matter where one is on a country's production possibility frontier

Front 110

diminishing marginal returns

Back 110

eventually as increase production, returns get smaller per each additional unit produced- resource quality decreases and resource proportion for goods is different

Front 111

factor endowments

Back 111

the extent to which a country is endowed with such resources such as land, labor and capital

Front 112

economies of scale

Back 112

cost advantages associated with large-scale production

Front 113

first-mover advantages

Back 113

advantages accruing to the first to enter a market

Front 114

Porter's Diamond

Back 114

four acharacteristics that promote or impede creation of a competitive advatage:
1) Factor Endowments
2) Demand Conditions
3) Relating and Supporting Industries
4) Firm Strategy, Structure and Rivalry