• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

Card Range To Study



Play button


Play button




Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

50 Cards in this Set

  • Front
  • Back

What is Globalization?

A trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

What is the difference between globalization of markets and globalization of production?

Globalization of markets refers to the same products and services being available around the world.

Globalization of production refers to companies producing in a variety of locations.

Describe globalization in a historical context.

- Mankind has always been trading

- Age of exploration (1500s)

- The Industrial Revolution

- WWI and WWII halting the trend

- Post-War period, a new era of cooperation

- 1990s: Globalization expanding at unprecedented pace

What is involved in the globalization of markets and production?

- The creation of new market opportunities.

- Producing in foreign countries might be more efficient and affordable.

- Access to lower-cost workers (lower labor costs), technical expertise, production inputs (sometimes unavailable or unaffordable in the home country)

What are the two main forces that have contributed to the globalization trend picking up pace?

1) Falling barriers to trade and investment

2) Technological innovations

What are some falling barriers to trade and investment?

- Reduction/removal of trade barriers such as tariffs

- Deregulation, privatization, mergers/acquisitions

- Creations of international organizations promoting and regulating trade (World Trade Organization, International Monetary Fund, etc.)

- Regional trade agreements (EU, NAFTA, APEC, etc)

- Fall of the Soviet Empire and the Berlin Wall (1990s)

What technological innovations have contributed to globalization?

- Computers and the Internet

- Emailing and videoconferencing

- Wireless technologies

- E-commerce

- Cellphones and smart phones

- Advancements in transportation and travelling (faster, cheaper, more efficient)

What are some of the arguments in favour of globalization?

- Inevitable, new world order, modernization

- Better income opportunities for all people, nations (wealth and efficiency)

- Provides greater opportunities for business, labor, investment

- Healthy competition

- Wider, better choices for consumers

- Resources, knowledge, ideas, products, technologies shared among nations and firms

What are some of the arguments against globalization?

- Leads to job losses in developed economies

- Exploitation of labor in developing economies

- Widening of the income gap (inequality) within and between nations

- Powerful, multinational companies looking to maximize profits spread corruption

- Environmental concerns (pollution of air, water, earth)

- Loss of culture and sovereignty

What is involved in conducting business with or in a foreign country?

Conducting business in or with a foreign country requires familiarity with the laws and political system of that country.

Ethics must also be considered (labor laws, corruption, environment, human rights, etc.)

What is a political system?

A political system includes the structures, processes, and activities by which a nation governs itself.

Refers to politics and culture, political participation, and the extent to which the government controls the day-to-day functioning of the society.

What is democracy?

Democracy: Government leaders elected by the people or their representatives.

A government of the people, by the people, and for the people.

What are the characteristics of a democracy?

- Periodic elections

- Representation, parliament

- Multiple political parties, platforms

- Freedom of speech, the press, organization

- Fair court system independent of the government

- Non-political state bureaucracy, army, police

- Protection of minority rights

- Auditing of government actions, finances

- Transparency (easy public access to state information)

How is business conducted in a democracy?

- Stable business environment

- Laws protecting individual, business, and property rights (less corruption)

- Transparency in business dealings

- Normally (not always) open, free market economy consistent with the capitalist model

What is totalitarianism?

Individuals governing without the support of the people, tightly controlling people's lives, and not tolerating opposing views.

Involves imposed authority, a lack of constitutional guarantees, and restricted participation.

What is theocratic totalitarianism?

Theocratic (religious) regime means religious leaders are also political leaders.

Religious codes and rules define the laws.

Very open to interpretation,

Some examples include Sharia Law, Jewish codes, etc.

What is secular totalitarianism?

- Left wing (Communism)

- Right wing (Military)

- Tribal (One tribe, clan, ethnic group holding political power)

What is involved in conducting business in a totalitarian state?

- High risk, unpredictable results

- Vague or non-existent laws

- Usually high levels of corruption

- Unreliable business partners

What are political risks?

Likelihood that a society undergo political changes that negatively affect business activity

Includes the risk of conflict and violence, terrorism and kidnapping, property seizure (confiscation, nationalization), policy changes, local content requirements.

What are legal systems?

Sets of laws and regulations by which a country's laws are enacted and enforced, and the ways in which its courts hold parties accountable for their actions.

What is common law?

- Developed in 11th Century England

- Practiced in Britain, US, English Canada, and ex-British colonies around the world

Based on three distinct elements: tradition (country's legal history), precedent (past cases before the courts), usage (interpreted case by case).

What is civil law?

- Origins traced to the Roman law and the Napoleonic code

- Based on a detailed set of written rules and legal codes

- Less open to interpretation

- Practiced in most Western European and Latin American countries, Russia, Japan, and Quebec

What is theocratic law?

- Based on religious codes and teachings

- Most common in Islamic countries, but also Jewish and Hindu societies

- May be strict and harsh

- Open to interpretation

What is property and what are property rights?

Property is any asset or resource of value one possesses (land, equipment, vehicle, capital, idea, formula, etc.)

Property rights are legal rights to the property and any revenue derived from the property

What is intellectual property?

Property that results from people's intellectual talent and abilities.

What is a patent?

Property right granted to the inventor of a product or process that excludes others from making, using, or selling the invention.

What is a trademark?

Property right in the form of words or symbols that distinguish a product and its manufacturer.

What is copyright?

Property right giving creators of original works (music, books, paintings, software, etc.) the freedom to publish or dispose of them as they choose.

What are emerging economies?

- New economics superpowers: Brazil, Russia, India, China (BRIC)

- G7, G8 and G20

- G20 represent around 80% of global output, 75% of world trade, and two thirds of the world population.

How are economies classified?

- Developed countries (US, Canada, etc.)

- Newly industrialized (China, India, etc.)

- Developing or less-developed nations (Afghanistan, Burma, Somalia, Haiti, etc.)

What are some determinants of economic development?

Most important indicator: Gross Domestic Product (GDP) and GDP per capita.

Some other economic factors include rate of inflation, national debt, budget surplus/deficit, rate of unemployment, balance of trade (exports vs imports), productivity.

What is purchasing power and purchasing power parity?

Purchasing power refers to the value of goods and services that can be purchased with one unit of a country's currency.

Purchasing power parity is the relative ability of two country's currency to buy the same "basket" of goods in those two countries.

Takes the cost of living (prices) into consideration.

What is the Human Development Index?

HDI is a measure of the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living.

What is the National Happiness Index?

Based on income, healthy years of life expectancy, availability of social support, philanthropy, perceptions of corruption in government and business, individual perceptions of their personal freedoms.

What are some non-economic determinants of development?

- Quality of life

- Healthcare (life expectancy, infant mortality)

- Education, literacy (cost and availability)

- Economic freedom, security

- State support (R&D), grants, subsidies, tax incentives

- Other social programs, infrastructure

Describe some economic systems

- Centrally planned (Communism, Socialism)

- Market economy (Capitalism) based on laws of supply and demand; Adam Smith, Laissez faire, Invisible hand.

- Mixed economy: Combination of market and centrally planned economies.

- Most countries have a mixed economy

What is culture?

Set of values, beliefs, rules, and institutions held by a specific group of people (national culture vs sub-culture).

What is ethnocentricity?

Belief that one's own ethnic group or culture is superior to that of others.

What is orientalism?

A term coined by the Arab scholar, Edward Said, in the early 20th century, reflecting the superior attitude of the Western world toward the non-Western world.

Describe cultural diffusion and cultural imperialism.

Cultural diffusion: process whereby cultural traits spread from one culture to another.

Cultural imperialism: replacement of one culture's traditions, folk heroes, and artifacts with substitutes from another.

Describe the components of culture.

- Personal communication (language, non-verbal communication)

- Aesthetics (What a culture considers "good taste," especially in the arts)

- Values and attitudes (time, work, money, change)

- Manners (appropriate behaviour, conduct) and customs

- Tradition and rituals

- Social structures (family, gender, status, mobility, class system)

- Education (literacy etc.)

- Physical and material environments (geography)

- Religion

- Cuisine

Describe Western faiths.

- Judaism, Christianity, Islam

- All originating in the Middle East

- Foundations of Western culture and civilizations (Judeo-Christian religions, Greco-Roman civilizations)

Describe Judaism.

- The first monotheistic faith

- Over 3000 years old

- About 15 million adherents worldwide

- Jewish diaspora (product of persecution)

- State of Israel, "officially" a Jewish state

- The Ten Commandments

Describe Christianity.

- An offshoot of Judaism, also monotheist

- Old and New Testament

- Many branches and various churches (Catholicism, Protestantism, Orthodoxy)

- 2+ Billion Christians worldwide

- Notions of duality (Heaven and Hell, light and darkness, good and evil)

- Afterlife, judgement day

- Mostly present in Europe and Americas

Describe the Protestant work ethic.

- Proposed by Max Weber (early 20th century)

- Central values: hard work, money, business, time.

Describe Islam.

- About 1.3 billion adherents worldwide (2nd largest)

- Mainly present in Middle East, North Africa, Central and South Asia

- Originated 7th century A.D.

- Driven from and largely based on Judaism and Christianity (many similar features and doctrines such as Monotheism, the afterlife)

- Strict and specific guidelines (marriage, divorce, inheritance, gender roles). Many dos and don'ts.

- Guidelines in politics and business

- Sharia law (advocated by many devout Muslims)

Describe Eastern religions and philosophies.

- Hinduism, Buddhism, Taoism, Confucianism, Shinto.

- Very different from Western faiths

- Not monotheistic (polytheistic or no mention of creator)

- Less strict and specific

Describe Hinduism

- Oldest faith (origins unknown)

- About 1 Billion adherents, mainly in India (over 80% of population)

- Dharma: moral force ruling the universe

- Karma: all the good and bad acts a person commits

- Reincarnation

- Nirvana: Spiritual perfection, eternal peace, enlightenment.

- Caste system (social classification of society)

- Highly ritualistic and varied region by region

Describe Buddhism

- About 2600 years old

- Driven from Hinduism (many similar concepts)

- Suffering and its root: ego, selfishness, craving, desire

- Transformation of suffering possible (8 fold path)

- Ultimate goal: reaching Nirvana, enlightenment

- Focus on the present moment rather than future or past

- Meditation

Describe Confucianism

- About 2500 years old

- Huge influence on Chinese culture

- Main Doctrine: how to achieve a well-ordered society

- No mention of a creator

- Loyalty, respect (particularly for authority), knowing one's place (social hierarchy)

- Importance of education