Term
| ascribed group membership |
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Definition
| affiliations determined by birth,gender, family, age, caste, and ethnic, racial, or national origin |
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Term
| acquired group membership |
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Definition
| affiliations based on religion, political affiliation, and professional and other associations |
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Term
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Definition
| occurs when divergent cultures come in contact |
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Term
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Definition
| Even if a home and host country have similar cultures, a business interaction may be viewed negatively--a situation called cultural friction--because of possible changes in power relationships and the sovereignty that sets countries apart. |
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Term
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Definition
| the frustration that results from having to absorb a vast array of new cultural cues and expectations |
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Term
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Definition
| some people experience culture shock when they go back home--a phenomenon known as reverse shock. Basically, they've learned to accept the things they've encountered abroad. |
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Term
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Definition
| Change by imposition--sometimes called cultural imperialism--involves the imposed introduction into a culture of certain elements from an alien culture, such as the forced change in law by an occupying country which, over time, becomes part of the subject culture. |
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Term
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Definition
| learned norms based on values, attitudes, and beliefs of a group of people, is an integral part of a nation's operating environment |
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Term
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Definition
| (living for the future) is more pronounced in Switzerland, the Netherlands, and Canada than in Russia, Poland, and Italy |
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Term
| hierarchy-of-needs theory |
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Definition
| of motivation, people try to fulfill lower-level needs before moving on to higher needs. (bottom) physiology, security, affiliation, esteem, & self-actualization (top) |
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Term
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Definition
| some cultures prefer to establish overall principles before they try to resolve small issues |
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Term
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Definition
| cultures in which people focus more on details than on abstract principles |
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Term
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Definition
| people tend to regard seemingly peripheral information as pertinent and to infer meanings from things said either indirectly or casually |
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Term
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Definition
| cultures in which people generally regard as relevant only firsthand information that bears directly on the subject at hand |
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Term
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Definition
| people refer to work sequentially, such as finishing transactions with one customer before dealing with another |
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Term
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Definition
| working simultaneously on a variety of tasks, such as dealing immediately with multiple customers who need service |
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Term
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Definition
| is high, most employees prefer following set rules even if breaking them may be in the company's best interest. They also plan to stay with current employees for a long time, preferring the certainty of present positions over the uncertainty of potential advancement elsewhere. |
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Term
| power distance (high/low) |
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Definition
| refers to the general relationship between superiors and subordinates. high, people prefer little consultation between superiors and subordinates. Two styles: autocratic (ruling with unlimited authority) and paternalistic (regulating conduct by supplying needs). low, consultive styles. |
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Term
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Definition
| this doctrine emphasizes the primary of the collective--whether it is a group, party, class, society, nation, race, etc.--over the interest of the individual. Ultimately the group as a whole is greater than the sum of its parts. |
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Term
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Definition
| this doctrine emphasizes independence--the principle that all men have "certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness |
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Term
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Definition
| "leaving things alone," laissez-faire holds that government should not interfere in business affairs |
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Term
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Definition
| namely the country of manufacture, production, or growth where a product comes from |
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Term
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Definition
| citizens are politically and legally equal; all are equally entitled to freedom of thought, opinion, belief, speech, and association; and all equally enjoy sovereign power over legislators and officials |
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Term
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Definition
| the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage |
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Term
| intellectual property rights (IPRs) |
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Definition
| the registered owner of a copyright has the legal right to decide who may copy it or who may use it for another purpose |
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Term
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Definition
| specifies the rules that regulate behavior of individuals and companies, the process by which laws of a country are enforced, and the procedures used to resolve grievances |
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Term
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Definition
| the potential loss arising from a change in government policy |
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Term
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Definition
| a single agent in whatever form--such as an individual, an assembly, a committee, a junta, or a party--monopolizes political power |
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Term
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Definition
| holds that ultimate power resides in a person. His word and whim, no mater how unfair or unjust, is law |
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Term
| bottom of the pyramid phenomenon |
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Definition
| the billions of people living on less than a few dollars per day who have been seen as inaccessible and unprofitable but may represent the next market frontier of the global economy |
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Term
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Definition
| is a free market system built on a doctrine of private ownership and control |
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Term
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Definition
| a centrally planned system on state ownership of the factors of production and control of economic activity |
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Term
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Definition
| is a system in which individuals, rather than government, make the majority of economic decisions |
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Term
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Definition
| is the set of structures and processes that guide the allocation of resources and shapes the conduct of business activities in a country |
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Term
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Definition
| is the "absence of government coercion or constraint on the production, distribution, or consumption of goods and services beyond the extent necessary for citizens to protect and maintain liberty itself....people are free to work, produce, consume, and invest in the ways they feel are most productive |
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Term
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Definition
| estimates the extent to which the government of a country constrains free choice and free enterprise for reasons that go beyond the need to protect property, liberty, citizens safety, and market efficiency |
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Term
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Definition
| results when the government spends more than it collects in revenues |
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Term
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Definition
| results when a government borrows money from lenders outside the country, such as private commercial banks, other governments, or international financial institutions (e.g., the IMF or World Bank) |
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Term
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Definition
| this measurement assesses the degree of inequality in the distribution of family income in a country. Gini index zero = perfect equality |
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Term
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Definition
| holds that a country's economy is a component of, and dependent on, the natural world within which is resides |
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Term
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Definition
| a sustained rise in price measured against a standard level of purchasing power |
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Term
| Gross National Income (GNI) |
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Definition
| measure the income generated by both total domestic production as well as the international production activities of national companies. GNI is the broadest measure of economic activity for a country |
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Term
| Gross national product (GNP) |
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Definition
| is the value of all final goods and services produced within a nation in a given year, plus the income earned by its citizens abroad, minus the income earned by foreigners from domestic production |
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Term
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Definition
| measures country's achievements on three dimensions: Longevity, knowledge, & standard of living. The HDI aims to capture long-term progress in human development rather than short-term changes |
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Term
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Definition
| referred to as a socialist economy or state capitalism, is a system in which economic decisions are principally market driven and ownership is principally private, but the government intervenes from slightly to extensively, in resource allocations and economic decisions |
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Term
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Definition
| the sale and legal transfer of government-owned resources to private interests |
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Term
| purchasing power parity (PPP) |
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Definition
| a conversion that adjusts the exchange rate so that an identical good in two different countries has the same price when expressed in the same currency |
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Term
| balance-of-payment effect |
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Definition
| Impact of a foreign direct investment on imports, exports and capital flow |
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Term
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Definition
A set of principles guiding the actions of MNEs in their contacts with
societies |
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Term
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Definition
| Theory, first presented by Adam Smith, which holds that because certain countries can produce some goods more efficiently than other countries, they should specialize in and export those things they can produce more efficiently and trade for other things they need. |
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Term
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Definition
The impact of an economic activity on someone external to the specific
activity, such as the impact of pollution on those not involved in the economic activity that
created pollution. The externality may be positive or negative. |
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Term
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Definition
| A form of trade advantage due to technology rather than due to the availability of natural resources, climate, etc |
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Term
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Definition
| The theory that there is a global efficiency gains from trade if a country specializes in those products that it can produce more efficiently than other products regardless of whether other countries can produce those products even more efficiently |
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Term
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Definition
The extension by a government of the application of its laws to foreign
operations of companies. |
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Term
| Foreign Corrupt Practices Act (FCPA) |
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Definition
A law that criminalizes certain types of payments
by U.S. companies, such as bribes to foreign government officials. |
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Term
| Country-similarity theory |
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Definition
| The theory that a company will seek to exploit opportunities in those countries most similar to its home country because of perceived need to make fewer operating adjustments. |
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Term
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Definition
The international agreement among countries to reduce the emission of
green house gases. |
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Term
| Diamond of national advantage |
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Definition
| A theory that says countries usually need four conditions (demand, factors, related and supporting industries, strategy, structure and rivalry) to develop and sustain a product’s competitive advantage |
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Term
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Definition
A theory stating that universal standards of behavior (based on people’s
own values) exist that all cultures should follow, making nonintervention unethical. |
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Term
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Definition
| The movement of factors of production such as labor and capital from one location to another |
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Term
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Definition
A theory stating that ethical truths depend on the groups holding them,
making intervention be outsiders unethical. The belief that behavior has meaning and can
be judged only in its specific cultural context. |
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Term
| factor-proportions theory |
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Definition
| The theory that differences in a country’s proportionate holdings of factors of production (land, labor and capital) explain differences in the costs of the factors and that export advantages lie in the production of goods that use the most abundant factors. |
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Term
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Definition
The collection of groups including stockholders, employees, customers and
society at large, that a company must satisfy to survive. |
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Term
| favorable balance of trade |
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Definition
| An indication that a country is exporting more than it imports |
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Term
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Definition
Meeting the needs of the present without compromising the ability of future
generations to meet their own needs while taking into account what is best for the people and the environment. |
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Term
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Definition
| An economic philosophy based on the beliefs that a country’s wealth is dependent on its holdings of treasure, usually in the form of gold, and that countries should export more than they import in order to increase wealth. |
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Term
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Definition
| A duty (tariff) assessed as a percentage of value of the item |
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Term
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Definition
| Climatic conditions, access to certain natural resources, or availability of labor, which gives a country an advantage in producing some product. |
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Term
| Comparable-access argument |
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Definition
| Companies and industries often argue that they are entitled to the same access to foreign markets as foreign industries and companies have to their markets. |
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Term
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Definition
| A tax placed on goods traded internationally, based on value plus units. |
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Term
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Definition
| The approach of countries that apparently try to run favorable balances of trade in an attempt to achieve some social or political objective. |
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Term
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Definition
A requirement that an exporter create value in the importing country,
such as by transferring technology or receiving payment in the importing country’s merchandise. An umbrella term for several sorts of trade, such as barter or offset, in which the seller accepts goods or services, rather than currency or credit, as payment. |
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Term
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Definition
| Products and services that are seldom practical to export, primarily because of high transportation costs. |
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Term
| product life cycle (PLC) theory |
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Definition
| The theory that certain kinds of products go through a cycle consisting of four stages ( introduction, growth, maturity and decline) and that the location of production will shift internationally depending on the stage of cycle |
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Term
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Definition
The underpricing of exports usually below cost or below the home-country
price. |
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Term
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Definition
| Theory that larger countries are generally more self-sufficient than smaller countries |
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Term
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Definition
| A government tax (tariff) levied on goods shipped internationally. Also called tariff. |
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Term
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Definition
The real tariff on the manufactured portion of developing countries’
exports, which is higher than indicated by the published rates because the ad valorem tariff is based on the total value of the products, which includes raw materials that would have had duty-free entry. |
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Term
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Definition
| A situation in which a country imports more than it exports |
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Term
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Definition
| A specific type of quota that prohibits all trade. |
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Term
| Essential-industry argument |
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Definition
The argument holding that certain domestic industries need
protection for national security purposes. |
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Term
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Definition
| A situation in which a country exports more than it imports |
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Term
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Definition
| An industrialization policy emphasizing industries that will have export capabilities. |
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Term
| Unfavorable balance of trade |
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Definition
| An indication of a trade deficit- that is, imports are greater than exports. Also called deficit. |
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Term
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Definition
| A tax on goods leaving a country |
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Term
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Definition
| A form of countertrade in which an exporter sells goods for cash but then helps businesses in the importing country to find opportunities to earn hard currency. |
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Term
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Definition
| A requirement that an individual or company must apply to government authorities for permission to buy foreign currency above some determined threshold amount |
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Term
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Definition
| The argument that a foreign producer will lower its prices if an important tax is placed on its products |
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Term
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Definition
| A document that grants a government permission to ship certain products to a specific country. |
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Term
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Definition
| Government restrictions on imports and occasionally on exports that frequently give direct or indirect subsidies to industries to enable them to compete with foreign production either at home or abroad |
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Term
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Definition
| A tax on goods entering a country |
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Term
| Industrialization argument |
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Definition
| A rationale for protectionism that argues that the development of industrial output should come about even though domestic prices may not become competitive on the world market. |
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Term
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Definition
| A limit on the quantitative amount of a product allowed to be exported from or imported into a country. |
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Term
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Definition
| The position that holds that an emerging industry should be guaranteed a large share of the domestic market until it becomes efficient enough to compete against imports. |
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Term
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Definition
| A duty (tariff) assessed on a per-unit basis. |
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Term
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Definition
| Direct assistance from governments to companies to make them more competitive. |
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Term
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Definition
: A government tax levied on goods, usually imports, shipped internationally.
Terms of trade: The quantity of imports that can be bought by a given quantity of a country’s export |
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Term
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Definition
| A tax placed in goods passing through a country |
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Term
| Voluntary export restraint(VER |
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Definition
| A negotiated limitation of exports between an importing and an exporting country. |
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