Term
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Definition
| Any business transaction between parties (firms) from more than one country [Involves cross border transactions] |
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Term
| Why is international business more complex than domestic business |
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Definition
| multiple currencies, legal systems, cultures, etc. (involves more than one country) duh Katie |
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Term
| Why is international business growing so rapidly? |
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Definition
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Term
| Market based arrangements |
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Definition
| the buyers and sellers are at ARMS LENGTH from one another (unrelated) |
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Term
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Definition
| Firms under common control and share common goals and resources. are NOT at arms length. (RELATED) |
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Term
| Location of production and who makes the product |
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Definition
| keys to determining a business relationship |
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Term
| Differences between FDI and FPI |
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Definition
FDI involves control
FPI's return is interest, FDI's return is profit |
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Term
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Definition
| Multinational enterprise: firms that own or control value adding activities in two or countries |
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Term
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Definition
| Korean family conglomerate |
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Term
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Definition
| Japanese family conglomerate |
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Term
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Definition
| japanese international trading company (market based) |
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Term
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Definition
Social structure
Religion
Values and attitudes
Communication
Language |
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Term
| Hostede's cultural characteristics |
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Definition
Power
Social
Uncertainty
Goal
Time |
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Term
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Definition
Culture
Administrative
Geography
Economics |
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Term
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Definition
| Uncontentious use of one's own culture to judge new surroundings (Canada through US eyes) |
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Term
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Definition
| Long lasting sets of rules compliance procedures and moral and ethical norms that bind together society. |
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Term
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Definition
"Hard" Institutions.
Have rules and strict enforcement
"May or may not" |
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Term
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Definition
What you "Should" do
Tactic understanding
Norms of society
(Walking on the grass) |
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Term
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Definition
Effects the way people notice, characterize, interpret, and organize their surrounding environment
"Can / Cannot" do
[Women drivers] |
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Term
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Definition
| conforming to environment |
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Term
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Definition
Forced conformity
formal regulatory pressures |
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Term
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Definition
Imitate behavior of people around you
Individuals/firms CHOOSING to imitate to be viewed as an insider |
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Term
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Definition
| SHOULD conform voluntarily choosing to conform by normative standards |
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Term
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Definition
being a stranger in a strange land
(additional non economic costs) |
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Term
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Definition
| degree of dissimilarity between two countries' institutions |
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Term
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Definition
| distance between home and host countries |
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Term
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Definition
| VOLUNTARY trade between two countries |
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Term
| Why do we assume countries trade voluntarily? |
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Definition
| because they must believe that they will both gain from trade |
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Term
| Country based explanations for international trade |
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Definition
Mercantilism
Theory of absolute/ comparative advantage
theory of relative factor endowment |
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Term
| Firm based explanations of international trade |
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Definition
Country similarity theory
product life cycle theory
global strategic rivalry theory |
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Term
| Porter's Diamond of National competitive advantage |
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Definition
| Combines all the theories into a diamond |
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Term
| Follow the leader strategy |
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Definition
Comes from global strategic rivalry theory
people follow companies that do well in a new industry |
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