Term
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Definition
| trend towards a more integrated global economic system |
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Term
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Definition
| the merging of historically distinct and separate national markets into one huge global marketplace |
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Term
| Globalization of production |
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Definition
| the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality |
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Term
| What do Global institutions do? |
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Definition
manage, regulate, and police the global market place
promote the establishment of multinational treaties to govern the global business system |
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Term
| Notable global institutions include |
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Definition
the World Trade Organization (WTO)
the International Monetary Fund (IMF)
the World Bank
the United Nations (UN) |
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Term
| What is driving the move toward greater globalization? |
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Definition
1. declining trade and investment barriers
2. technological change |
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Term
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Definition
| when a firm exports goods or services to consumers in another country |
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Term
| Foreign direct investment (FDI) |
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Definition
| when a firm invests resources in business activities outside its home country |
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Term
| stock of foreign direct investment |
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Definition
| total cumulative value of foreign investments |
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Term
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Definition
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Term
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Definition
| any business that has productive activities in two or more countries |
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Term
| What will the global economy look like in the 21st century |
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Definition
A more integrated global economy
new opportunities for firms
but, political and economic disruptions can throw plans into disarray |
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Term
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Definition
country's political, economic, and legal systems. systems are interdependent, and interact and influence each other
A country’s political system has major implications for the practice of international business |
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Term
| Political systems can be assessed |
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Definition
in terms of the degree to which they emphasize collectivism as opposed to individualism
in terms of the degree to which they are democratic or totalitarian |
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Term
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Definition
| stresses the primacy of collective goals over individual goals |
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Term
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Definition
| suggests individuals should have freedom over their economic and political pursuits |
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Term
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Definition
| government is by the people, exercised either directly or through elected representatives |
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Term
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Definition
| one person or political party exercises absolute control over all spheres of human life, and opposing political parties are prohibited |
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Term
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Definition
| likely in countries where individual goals are given primacy over collective goals |
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Term
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Definition
| goods and services that a country produces, and the quantity in which they are produced is determined by supply and demand |
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Term
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Definition
| goods and services that a country produces, the quantity in which they are produced, and the price at which they are sold are all planned by the government |
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Term
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Definition
| some elements of a market economy and some elements of a command economy |
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Term
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Definition
rules, or laws, that regulate behavior, along with the processes by which the laws of a country are enforced and through which redress for grievances is obtained
laws regulate business practice
laws define the manner in which business transactions are to be executed
laws set down the rights and obligations of those involved in business transactions |
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Term
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Definition
based on tradition, precedent, and custom
found in most of Great Britain’s former colonies, including the United States |
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Term
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Definition
based on a very detailed set of laws organized into codes
found in over 80 countries, including Germany, France, Japan, and Russia |
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Term
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Definition
based on religious teachings
Islamic law is the most widely practiced |
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Term
| country’s gross national income (GNI) per head of population |
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Definition
| measures country's economic development |
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Term
| purchasing power parity (PPP |
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Definition
| direct comparison of living standards in different countries |
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Term
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Definition
| transfers the ownership of state property into the hands of private investors |
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Term
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Definition
| likelihood that political forces will cause drastic changes in a country's business environment that adversely affects |
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Term
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Definition
| likelihood that economic mismanagement will cause drastic changes in a country's business environment that adversely affects the profit and other goals of a business enterprise |
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Term
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Definition
| likelihood that a trading partner will opportunistically break a contract or expropriate property rights |
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Term
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Definition
| how a society deals with the fact that people are unequal in physical and intellectual capabilities |
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Definition
| extent to which different cultures socialize their members into accepting ambiguous situations and tolerating ambiguity |
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Term
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Definition
| captures attitudes towards time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors |
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Term
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Definition
| captures attitudes towards time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors |
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Term
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Definition
| a situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country |
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Term
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Definition
| encouraging members to strengthen the regulations governing the imposition of antidumping duties |
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Term
| Protectionism in agriculture |
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Definition
| concerned with the high level of tariffs and subsidies in the agricultural sector of many economies |
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Term
| Protecting intellectual property |
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Definition
| members believe that the protection of intellectual property rights is essential to the international trading system |
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Term
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Definition
cutting tariffs on industrial goods and services
phasing out subsidies to agricultural producers
reducing barriers to cross-border investment
limiting the use of anti-dumping laws |
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Term
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Definition
| the establishment of a wholly new operation in a foreign country |
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Term
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Definition
The flow of FDI refers to the amount of FDI undertaken over a given time period
The stock of FDI refers to the total accumulated value of foreign-owned assets at a given time |
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