Term
|
Definition
| trend away from distinct national economic units and toward one huge global market |
|
|
Term
|
Definition
| moving away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national markets are merging into one global market. |
|
|
Term
| Globalization of production |
|
Definition
| trend by individual firms to disperse parts of the productive processes to different locations around the globe to take advantage of national differences in the cost and quality of factors of production |
|
|
Term
|
Definition
| imputs into the productive process of a firm, including labor, management, land, capital, and technological know-how. |
|
|
Term
General Agreement on Tariffs and Trade
(GATT)
|
|
Definition
| international treaty that committed signatories to lowing barriers to the free flow of goods across national borders and led to the WTO |
|
|
Term
World Trade Organization
(WTO) |
|
Definition
| organization that succeeded the GATT as a result of the successful completion of the Uruguay Round of GATT negotiations |
|
|
Term
International Monetary Fund
(IMF) |
|
Definition
| international institution set up to maintain order in the international monetary system. |
|
|
Term
|
Definition
| international organization set up to promote general economic development in the world's poorer nations |
|
|
Term
|
Definition
| an internat'l organization made up of 191 countries and headquartered in NYC formed in 1945 to promote peace, security, and cooperation |
|
|
Term
|
Definition
| occurs when a firm exports goods or services to consumers in another country |
|
|
Term
Foreign Direct Investment
(FDI) |
|
Definition
| direct investment in business operations in a foreign country |
|
|
Term
|
Definition
| the power of the microprocessor, the single most important innovation, technology doubles and its cost of production talls in half every 18 mos. |
|
|
Term
| stock of foreign direct investment |
|
Definition
| the total cumulative value of foreign-owned assets at a given time. |
|
|
Term
Multinational Enterprise
(MNE) |
|
Definition
| a firm that owns business operations in more than one country |
|
|
Term
|
Definition
| the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the levels of economic well-being. |
|
|
Term
|
Definition
| the system of government in a nation. assessed by two dimensions: degree to which they emphasize collectivism or individualism, the degree to which they are democratic or totalitarian |
|
|
Term
|
Definition
| a political system that emphasizes collective goals over individual goals; needs of society as a whole more important; philosophy of Plato..."common good" |
|
|
Term
|
Definition
| (karl marx); advocating substantial public involvement through government ownership, in the means of production and distribution |
|
|
Term
|
Definition
| those who believe socialism can be achieved through revolution and totalitarian dictatorship |
|
|
Term
|
Definition
| those committed to achieving socialism by democratic means |
|
|
Term
|
Definition
| the sale of the state-owned enterprises to private investors. |
|
|
Term
|
Definition
| an emphasis on the importance of guaranteeing individual freedom and self-expression. aristotle. |
|
|
Term
|
Definition
| politcal system in which government is by the people, exercised eeith directly or through elected representatives |
|
|
Term
|
Definition
| form of governement in which one person or politcal party exercises absolute control oer all spheres of human life and prohibis opposing politcal parties. |
|
|
Term
|
Definition
| a political system in which citizens periodically elect individuals to represent them. |
|
|
Term
|
Definition
| a version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship |
|
|
Term
| theocratic totalitarianism |
|
Definition
| a political system inwhich pplitical power is monopolized by a party, group, or individual that goerns according to religious prinicples; such as Iran/saudi Arabia. These states limit political and religious expression with laws based on Islamic principles |
|
|
Term
|
Definition
| political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power. |
|
|
Term
| Right-Wing Totalitarianism |
|
Definition
| political power is monopolized by a party, group, or individual that generally permits indivvidual econoic freedom but restricts individual political freedom, including free speech, frequently on the grounds that it would lead to the rise of communism; commonly backed by military |
|
|
Term
|
Definition
| an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced; all productive activities are privately owned. customers are sovereign. consumption patterns signaled to producers thorugh price system. |
|
|
Term
|
Definition
an economic system in which the government plans the goods and services that a country produces, the quantity in which the are produced, and the prices at which the are sold; goal for the government to allocate resources for "the good of society; number has fallen dramatically with the fall of communist countries.
>dynamism and innovation absent...tends to stagnant |
|
|
Term
|
Definition
| certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning; privatization has reduced state ownership of businesses; governements inject capital into troubled enterprises for the greater good of society. |
|
|
Term
|
Definition
| system of rules that regulate behavior and the processes by which the laws are enforced and through which redress of grievances is obtained...regulate business practices, define the manner in which transactions are executed, and set down the rights and obligations of those involved in business transaction; influenced by prevailing political system; rules reflect rulers dominant political ideology. |
|
|
Term
|
Definition
| a system of law based on tradition, precedent, and custom |
|
|
Term
|
Definition
| a system of law based on a detailed set of written laws and codes; judges have less flexibility to interpret the law and must only apply the law. |
|
|
Term
|
Definition
| a system of law based on religious teachings. Islamic most widely practiced; also have some elements of common or civil law |
|
|
Term
|
Definition
| the body of law that governs contract enforcement |
|
|
Term
United Nations Convention on Contracts for the International Sale of Goods
(CIGS) |
|
Definition
| a set of rules governing certain aspects of the making and performance of commercial contracts between sellers nd buyers who have their places of business in different nations. |
|
|
Term
|
Definition
the bundle of legal rights over the use to which a resource is put and over the use made of any incom that may be derived from that resource. Property rights can still be violated in two ways:
1)private action--the theft, piracy, blackmail, and the like by private individuals or groups.
2)public action and corruption--the extortion of income or resources of property holders by public officials, such as politicans and governement bureaucrats. (corruption reduces FDI |
|
|
Term
| Foreign Corrupt Practices Act |
|
Definition
| U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions. grease/speedy payments acceptable bc they facilitate performance of dudties that the recipients are already obligated to perform. |
|
|
Term
|
Definition
| products of the mind such as computer software, a screenplay, a music store, or the chemical formula for a new drug: can be protected b patents, copyrights, and trademarks. |
|
|
Term
|
Definition
| grants the inventor of a new product/process exclusive rights for a defined period to the manufacture, use, or sale of that invention. |
|
|
Term
|
Definition
| the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit. |
|
|
Term
|
Definition
| designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products. |
|
|
Term
| World Intellectual Poperty organization |
|
Definition
| an international organization whose members sign treaties designed to protect intellectual property. |
|
|
Term
| paris convention for the protection of industrial property |
|
Definition
| international agreement to protect intellectual property; dates to 1883 and has been signed by some 170 nations. |
|
|
Term
|
Definition
| set certain safety standards to which a product must adhere |
|
|
Term
|
Definition
| involves holding a firm and its officers responsible when a product causes injury, death, or damage |
|
|
Term
Gross Naional Income
(GNI) |
|
Definition
| the yardstick for measureing the economic activity of a country; it measures the total annual income received by a nation's residents |
|
|
Term
Purchasing Power Parity
(PPP) |
|
Definition
| an adjustment in gross domestic product per capita to reflect differences in the cost of living. |
|
|
Term
Human Development Index
(HDI) |
|
Definition
| an attempt by the UN to assess the impact of a number of factors on the quality of human life in a country; three measures: life expectancy, educational attainment, average incomes<.5 low human development, .5-.8 medium, .8>high |
|
|
Term
|
Definition
| development of new products, processes, organizations, management practices, and strategies...leads to increase in productivity of labor and capital which boosts economic growth rates. |
|
|
Term
|
Definition
| those who first commercialize innovations |
|
|
Term
|
Definition
| removal of government restrictions concerning the conduct of business. |
|
|
Term
|
Definition
| an understanding of how cultural differences across and within nations can affect the way business is practiced. |
|
|
Term
|
Definition
| abstract ideas about what a group believes to be good, right, and desirable |
|
|
Term
|
Definition
| social rules and guidelines that prescribe appropriate behavior in particular situations |
|
|
Term
|
Definition
| routine conventions of everyday life |
|
|
Term
|
Definition
| are norms that are seen as central to the functioning of a society and to its social life. Ex: indicment aga theft, adultery, incest |
|
|
Term
|
Definition
| the basic social organziation of a society; degree to hich the basic unit of social orgaization is the individual as opposed to a group; degree to which a society is stratefied into classes or castes. |
|
|
Term
|
Definition
| an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set of expectations about ach other's behavior. |
|
|
Term
|
Definition
| hierarchical social categories often based on family background, occupation, and income. Born toward the top of the social heiracrchy tend to have better life chances. Two diff b/t top and bottom...mobility among stratum and significance in business context. |
|
|
Term
|
Definition
| the extend to which individuals can move out of he strata into which they are born; most rigid system of stratification is the caste system |
|
|
Term
|
Definition
| a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime. |
|
|
Term
|
Definition
| a system of social stratification in which the position a person has by birth can be changed through his /her own acchievement or luck. |
|
|
Term
|
Definition
| a tendency for ppl to perceive themselves in terms of their class background. |
|
|
Term
|
Definition
| the accepted principles of right or wrong governing the conduct of businesspeople |
|
|
Term
| regional economic integration |
|
Definition
| agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other; been most successful in Europe. |
|
|
Term
|
Definition
a group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursing independent external trade policies; accounting for 90% of all regional agreements.
European Free Trade Association (EFTA)
Norway, Iceland, Liechtenstein, and Switzerland |
|
|
Term
European Free Trade Association
(EFTA) |
|
Definition
| a free trade association including Norway, Iceland, Liechtenstein, and Switzerland; the most enduring free trade area in the world. |
|
|
Term
|
Definition
a group of countries committed to (1)removing all barriers to the free flow of goods and services between each other and (2) the pursuit of a common external trade policy.
Ex: the Andean Community
Bolivia, Colombia, Ecuador, Peru, and Venezuela |
|
|
Term
|
Definition
a group of countries committed to (1)removing all barriers to the free flow of goods, services, and factors of production between each other and (2)pursuit of a common external trade policy. Labor/capital free to move due to no restrictions on immigration, emigration, or cross-border flows b/t member countries.
Ex: EU (priorly)
Mercosur: hopes to eventually establish itself as a common market |
|
|
Term
|
Definition
entails even closer economic integration and cooperation than a common market. a group of countries (1) removing all barriers to the free flow of goods, services, and factors of production; (2) the adoption of common currency; (3) the harmonization of tax rates; and (4) the pursuit of a common external trade policy.
Ex: EU |
|
|
Term
|
Definition
a central political apparatus that coordinates economic, social, and foreign policy.
Ex: United States |
|
|
Term
|
Definition
| trade created due to regional economic integration; occurs when high-cost domestic producers are replaced by low-cost foreign producers in a free trade area. |
|
|
Term
|
Definition
| trade diverted due to regional economic integration; occurs when low-cost foreign suppliers outside a free trade are are replaced by higher-cost foreign suppliers in a free trade area. |
|
|
Term
|
Definition
an economic group of 27 European nations; established as a customs union, it is moving toward economic union; formerly the European Community; product of two political factors:
(1) the devastation of Western Europe during two world wars and the desire for a lasting peace
(2) the European Nation's desire to hold their own on the world's political and economic stage. |
|
|
Term
|
Definition
| The 1957 treaty that established the European Community; provided for the creation of a common market. |
|
|
Term
|
Definition
| body responible for proposing EU legislation, implementing it, and monitoring compliance; commission has to be approved by Parliment before begins work. |
|
|
Term
|
Definition
| the ultimate controlling authority within the EU; |
|
|
Term
|
Definition
| Elected EU body that consults on the issues proposed by the European Commission; 732 members, consultative rather than legislative body, now has the right to vote for appointment of commissioners as well as veto some laws. |
|
|
Term
|
Definition
| Treaty signed in 2007 that made the European Parliament the co-equal legislator for almost all European laws and also created the position of the president of the European Council. |
|
|
Term
|
Definition
| Supreme appeals court for EU laws. |
|
|
Term
|
Definition
| A 1987 act, adopted by members of the European Community, that committed member countries to establishing an economic union. |
|
|
Term
|
Definition
| Treaty agreed to in 1991 but not ratified until Jan 1, 1994, that committed the 12 member states of the European Community to adopt a common currency. |
|
|
Term
|
Definition
| one where similarities in the underlying structure of economic activity make it feasible to adopt a single currency. |
|
|
Term
|
Definition
| free trade area between canada, mexico and the US. |
|
|
Term
|
Definition
| a 1969 agreement between bolivia, chile, ecuador, colombia, and peru to establish a customs union |
|
|
Term
|
Definition
| pact between argentina, brazil, parguay, and uruguay to establish a free trade area. |
|
|
Term
| central american common market |
|
Definition
| a trade pack bt costa rica, el salvador, guatemala, honduras and nicaragua, which began in the early 1960s but collapsed in 1969 due to war. |
|
|
Term
Central America Free Trade Agreement
(CAFTA) |
|
Definition
| the agreement of the member states of central american common market joined by the dominican republic to trade freely with the US. |
|
|
Term
|
Definition
| an association of english-speaking caribbean states that are attempting to establish a customs union |
|
|
Term
Caribbean Single Market and Economy
(CSME)
|
|
Definition
| unites six CARICOM members in agreeing to lower trade barriers and harmonize macroeconomic and monetary policies. |
|
|
Term
Association of Southeast Asian Nations
(ASEAN) |
|
Definition
| an attempt to establish a free trade area between brunei, ambodia, indonesia, laos, malaysia, myanmar, philippines, singapore, thailand, and vietnam. |
|
|
Term
Asia-Pacific Economic Cooperation
(APEC)
|
|
Definition
| made up of 21 member states whose goal is to increase multilateral cooperation in view of the economic rise of the Pacific nations. |
|
|
Term
|
Definition
| a strategy, or course of action, that does not violate the accepted principles of right or wrong governing the conduct of businesspeople |
|
|
Term
| Foreign Corrupt Practices Act |
|
Definition
| A U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions |
|
|
Term
| Convention on Combating Bribery of Foreign Public Officals in International Business Transactions |
|
Definition
| OECD convention that obliges member states to make the bribery of foreign public officials a criminal offense |
|
|
Term
|
Definition
| the idea that businesspeople should consider the social consequences of economic actions when making business decisions. |
|
|
Term
|
Definition
| a situation in which none of the available alternatives seem ethically acceptable |
|
|
Term
|
Definition
| he values and norms shared among an organization's employees |
|
|
Term
|
Definition
| the belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate. |
|
|
Term
|
Definition
| the belief that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries |
|
|
Term
|
Definition
| the belief that if a manager of a nultinational sees that firms from other nations are not following eithical norms in a host nations, that manager should not either |
|
|
Term
|
Definition
| these approaches to ethics hold that the moral worth of actions or practices is determined by their consequences |
|
|
Term
|
Definition
| the belief that people should be treated as ends and never as means to ends of others. |
|
|
Term
|
Definition
| 20th century theories that recognize human beings have fundamental rights and privileges that transcend national boundaries and cultures |
|
|
Term
| universal declaration of human rights |
|
Definition
| a united nations document that lays down the basic principles of human rights that should awlays be adhered to |
|
|
Term
|
Definition
| a distribution of economic goods and services that is considered fair and equitable |
|
|
Term
|
Definition
| a business's formal statement of ethical proiorities |
|
|
Term
|
Definition
| the individual or groups that have an interst, stake, or claim in the actions and overall performance of a company |
|
|
Term
|
Definition
| people who work for or own the business, such as employees, directors, and stockholders |
|
|
Term
|
Definition
| the individuals and groups that have some claim on the firms, such as customers, suppliers, and unions. |
|
|
Term
|
Definition
| the absence of government barriers to the free flow of goods and services between countries |
|
|
Term
|
Definition
| theory that sometimes countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limitied number of firms. |
|
|
Term
|
Definition
| an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports |
|
|
Term
|
Definition
| a situationin which economic gain by one country results in an economic loss by another. |
|
|
Term
|
Definition
| a country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it |
|
|
Term
| constant returns to specialization |
|
Definition
| the units of resources required to produce a good are assumed to remain constant no matter where one is on a country's production possibility frontier. |
|
|
Term
|
Definition
| the extent to which a country is endowned with such resources as land, labor, and capital |
|
|
Term
|
Definition
| cost advantages associated with large-scale production |
|
|
Term
|
Definition
| advantages accruing to the first to enter a market |
|
|
Term
|
Definition
|
|
Term
|
Definition
| a tariff levied as a fixed charge for each unit of good imported |
|
|
Term
|
Definition
| a tariff levied as a proportion of the value of an imported good |
|
|
Term
|
Definition
| government financial assistance to a domestic product |
|
|
Term
|
Definition
| a direct restriction on the quantity of some good that may be imported into a country |
|
|
Term
|
Definition
| the process of applying a lower tariff rate to imports within the quota than those over the quota |
|
|
Term
Voluntary Export Restraint
(VER) |
|
Definition
| a quota on trade imposed by the exporting country, typically at the request of the importing country's government |
|
|
Term
|
Definition
| the extra profit producers make when supply is articially limited by an import quota |
|
|
Term
| local content requirements |
|
Definition
| a requirement that some specific fractionof a good be produced domestically |
|
|
Term
| administrative Trade policies |
|
Definition
| bureaucratic rules designed to make it difficult for imports to enter a country |
|
|
Term
|
Definition
| selling goods in a foreign market at below teir costs of production or below their "fair" market value |
|
|
Term
|
Definition
| policies designed to punish foreign firms that engage in dumping and thus protect domestic producers from unfair foreign competition |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Act passed in 1996 that allowed Americans to sue foreign firms that use Cuban property confiscated from them after the 1959 revolution |
|
|
Term
|
Definition
| Act passed in 1996, similar to the helms-burton act, aimed at Libya and Iran |
|
|
Term
|
Definition
| New industries in developing countries must be temporarily protected from international competition to help them reach a position where they can compete on world markets with the firms of developed nations. |
|
|
Term
|
Definition
| government policy aimed at improving the competitive position of a domestic industry or domestic firm in the world market |
|
|
Term
|
Definition
| enacted in 1930 by the U.S. Cogress, this tariff erected a wall of barriers against imports into the United States |
|
|
Term
|
Definition
| establishing a new operation in a foreign country |
|
|
Term
|
Definition
| the amount of FDI undertaken over a given time period (normally a year). |
|
|
Term
|
Definition
| The total accumulated value of foreign-owned assets at a given time |
|
|
Term
|
Definition
| the flow of FDI out of a country |
|
|
Term
|
Definition
| The flow of FDI into a country |
|
|
Term
| Gross Fixed Capital Formation |
|
Definition
| Summaries the total amount of capital invested in factories, stores, office buildings, and the like |
|
|
Term
|
Definition
| Argument that combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI; it requires the firm to establish production facilities where those foreign assets or resource endowments are located |
|
|
Term
|
Definition
sale of products produced in one country to residents of another country
Limitations: transportaion costs and trade barriers |
|
|
Term
|
Definition
occurs when a firm licenses the right to produce its product, its prodution processes, or its brand name or trademark to another firm; in return for giving the licensee these rights, the licensor collects a royalty fee on every unit the licensee sells.
|
|
|
Term
|
Definition
| the argument that firms prefer FDI over licensing to retain control over know-how, manufacturing, marketing, and strategy or because some firm capabilities are not amenable to licensing; also kow as the market imperfections approach |
|
|
Term
|
Definition
| an industry composed of a limited numer of large firms |
|
|
Term
|
Definition
| arises when two or more enterprises encounter each other in different regional markets, national markets, or industries |
|
|
Term
| location-specific advantages |
|
Definition
| advantages that arise from utilizing resource endownments or assets that are tied to a particular foreign locaion and that a firm finds valuable to combine with its unique assets (such as the firm's technological, marketing, or management capabilities) |
|
|
Term
|
Definition
|
|
Term
| balance of payment accounts |
|
Definition
| national accounts that track both payments to and receipts from other countries |
|
|
Term
|
Definition
| in the valance of payments, records transactions involving the export and import of goods and services |
|
|
Term
|
Definition
| FDI undertaken to serve the home market |
|
|
