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32 Cards in this Set
- Front
- Back
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What are business motives to go global?
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To expand income base and To expand source options (e.g. labor, energy, land, and capital)
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What are key issues surrounding globalization?
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Labor, Environment, National Sovereignty, World's Poor, Debt Relief Movement, WTO Doha round
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What the issues surrounding labor in globalization?
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Wealth distribution, technology, and unskilled labor
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What are the key issues surrounding in Globalization?
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Noise and CO2
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What is the issue surrounding WTO Doha round?
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food subsides by rich nations
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Political Economy is a vision combined by...
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political system, economical system, legal system
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Common Law
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based upon tradition, precedence, and custom
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Civil Law
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based on detailed legal codes
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Theocratic Law
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based on religious teachings
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Under Common Law, contract tends to be
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detailed with all contingencies being spelled out
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Under Civil Law, contract tends to be
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be short and simple because issues are already covered by civil codes
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In the christian countries one sees...
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stoic discipline, hard working, humble in consumption and pleasure
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In Islamic countries one sees...
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critical of earning profit through exploitation of others
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In Hinduism one sees...
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spiritual progression, caste
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In Buddhism one sees...
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the way of life, spiritual perfection
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In Confucianism one sees...
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Loyalty, Reciprocal obligation, Honesty
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Social responsibility of business
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means that business should take the social consequences and business decisions should presume that they have both good economic and good social consequences
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Mercantilism
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nation wealth depends on accumulated treasures.
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Absolute advantage
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producing goods at lower cost than others
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Comparative advantage
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producing goods more efficiently than others.
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International Product Life Cycle
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matured productions change locations to lower costs
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Factor Endowment
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Import things that are scarce and export things that are abundant
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National Competitive Advantage
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Government policies to compete in the global industries. (Silicon Valley)
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What the interconnected diamond of porter's theory of National Comparative Advantage?
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Firm Strategy Structure, Demand Condition, Related Supporting industries, Factor Endowments
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Location =
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efficiency
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First Mover =
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economies of scale
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Policy implications in trade
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lobbying gov. helps make the diamond factors more favorable
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VER
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quota given by import licenses
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Dumping
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product costs, fair market value
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What are the forms of investments?
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exporting, licensing, Greenfield investment, acquisition
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Law of one price
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a price of a product in one country must be the same price converted in another country
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PPP theory
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a price of a “basket of goods” should be roughly equivalent in each country
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