I Bus 300 Vocab Ch 2

Front 1

Civil Law

Back 1

a legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgements

Front 2

Cognitive Pillar

Back 2

the internalized (taken-for-granted) values and beliefs that guide individual and firm behavior

Front 3

Command Economy

Back 3

an economy that is characterized by gvernment ownership and control of the factors of production

Front 4

Common law

Back 4

a legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgements

Front 5

Copyrights

Back 5

exclusive legal rights of authors and publishers to publish and disseminate their work

Front 6

Democracy

Back 6

a political system in which citizens elect representatives to govern their country on their behalf

Front 7

Economic system

Back 7

Rules of the game on how a country is governed economically

Front 8

Formal institutions

Back 8

institutions represented by laws, regulations, and rules.

Front 9

institutional framework

Back 9

formal and informal institutions that govern individual and firm behavior

Front 10

institutional transitions

Back 10

fundamental and comprehensive changes introduced tot eh formal and informal rules of the game that affects firms as players

Front 11

institution-based view

Back 11

a leading perspective in global business that suggests that the success and failure of firms are enabled and contrained by institutions

Front 12

institutions

Back 12

Formal and informal rules of the game

Front 13

intellectual property

Back 13

intangible property that is the result of intellectual activity

Front 14

IPR

Back 14

intellectual property rights. Rights associated with the ownership of intellectual property.

Front 15

legal system

Back 15

the rules of the game on how a country's laws are enacted and enforced.

Front 16

Market Economy

Back 16

An economy that is characterized by the invisible hand of market forces

Front 17

mixed economy

Back 17

an economy that has elements of both a market economy and a command economy

Front 18

moral hazard

Back 18

recklessness when people or organizations (including firms and governments) do not have to face the full consequences of their actions.

Front 19

normative pillar

Back 19

the mechanism through which norms influence the focal individuals and firms

Front 20

opportunism

Back 20

the act of seeking self-interest with guile

Front 21

Patents

Back 21

exclusive legal rights of inventors of new products or processes to derive income from such inventions

Front 22

political risk

Back 22

risk associated with political changes that may negatively impact domestic and foreign firms

Front 23

Political system

Back 23

the rules of the game on how a country is governee

Front 24

property rights

Back 24

the elgal rights to use an economic property (resource) and to derive income and benefits from it

Front 25

Regulatory pillar

Back 25

the coercive power of governments

Front 26

Theocratic law

Back 26

a legal system based on religious teachings

Front 27

totalitarianism (dictatorship)

Back 27

a political system in which one person or party excercises absolute political control over the population

Front 28

trademarks

Back 28

exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others

Front 29

transaction costs

Back 29

the costs associated with economic transactions or, more broadly, the costs of doing business

Front 30

Washington Consensus

Back 30

a view centered on the unquestioned belief in the superiority of private ownership voer state ownership in economic policy making, which is often spearheaded by two washington-based international organizations: the international money fund (IMF) and the World Bank.