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25 Cards in this Set
- Front
- Back
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New trade theory |
Suggests that nations may benefit from trade, even when they do not differ in resource endowments or technology, and that a country may predominate in the export of a good, simply because it was lucky enough to have one or more firms among the first to produce that good |
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Economies of scale |
A proportionate saving in costs gained by an increased level of production |
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Ownership advantages |
Advantages that arise from the accumulation of intangible assets, technological capacities or innovations |
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Location advantages |
Advantages that arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets |
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Internalisation advantages |
Factors associated with a firm deciding to keep the production of a good or service within the firm rather that outsourcing it to other firms |
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Market economy |
An economic system in which the interaction of individual decision makers on questions of supply and demand determines the quantity in which goods and services are provided |
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Centrally planned economy |
The assumption is that the government is a better judge of how resources should be allocated than is the market |
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Mixed economies |
In some cases, the degree of government intervention is difficult to quantify |
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Macro-economic indicators |
Geography, population, income, industrial structure |
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Culture is |
Learned, shared, adaptive, integrated |
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Competitive advantage |
the practical outcome of cultural understanding and competency |
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Practical outcome of cultural |
Cost savings, access to quality staff, marketing advantage, different problem solving approaches, effective management control |
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High cultural context |
Communicate as much by the context as the content. |
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Low cultural Context |
Communicate explicitly and more overtly via the content of the message |
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Political motives for government intervention |
Production of jobs, national security, retaliation, protection of consumer welfare, maintain cultural differences |
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Economic motives for government intervention |
Infant industry agreement, strategic trade policy |
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Infant industry agreement |
This calls for the protection of an emerging industry until it becomes efficient enough to compete in the world market |
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Strategic trade policy |
Government policy aimed at helping the country's domestic firms gain first-mover advantages or overcome the first-mover advantages of foreign firms in global markets that will profitably support only a few firms |
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Foreign direct investment |
When a firm invests resources in business activities outside its home country, giving it some control over those activities. |
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First-mover advantage |
The economic and strategic advantages that accrue to early entrants into an industry |
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Common market |
A group of countries committed to eliminating trade barriers, adopting a common external trade policy, and allowing factors of production to move freely between members |
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Comparative advantage |
The theory that countries should specialise in the production of goods and services they can produce relatively more efficiently |
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Country of origin effects |
The extent to which the place of a product's manufacturing influences its evaluations in the market |
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External economies |
Cost efficiencies in production and marketing that a firm employs as a result of the action of others external to the firm |
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Globalisation |
The shift towards a more integrated and interdependent world economy |
