Columns:
Rows:

Intl Business Word Search Puzzle

Question	Answer
Globalization	process by which perceived distance is shrinking, material culture is starting to look the same the world over, national economies are merging into one.
Who has the highest level of ouput in the world?	US
US GDP?	$42, 129 per capita
How much of the worlds GDP doe the US produce?	20.4
Globalization of markets?	refers to the merging of historically distinct & separate natikonal markets into 1 huge global marketplace.
What % of small businesses export?	90%
Globalization of production?	Sourcing of goods & services from locations around the globe to take advantage of national differences in the cost & quality of various factors of production.
Factors of production?	Components of production such as labor, energy, land, & capital
GATT	General Agreement on Tariffs & Trade. Intl treaty that committed signatories to lowering barriers to the free flow of goods across national borders; led to the WTO (World Trade Organization.
What is the WTO responsible for?	Primarily policing the world traiding systems and making sure nation-states adhere to the rules laid down in trade treaties signed by WTO member states.
What do critics accuse the WTO of?	The org is usurping the national sovereignty of individual nation-states.
What does IMF stand for?	International Monetary Fund
What is the difference between the IMF & the World Bank?	IMF was setup to maintain order in the international monetary system and the World Bank was set up to promote economic development.
What are considered infrastructure investments	Building dams or roads
What stipulations does the IMF make to give loans to cash strapped nation-states?	Adopt specific economic policies aimed at returning their troubled economies to stability and growth.
United Nations?	Intl org made up of 191 countries charged with keeping internaltional peace, developing cooperation between nations, amd promoting human rights.
What are the four purposes of the UN?	To maintain international peace and security, develop friendly relations amoung nations, cooperate in solving international problems and in promoting respect for human rights and to be a center for harmonizing the actions of the nations.
Factors of production	Labor, energy, land, & Capital
Intl Trade	occurs when a firm exports goods or services to consumers in another country
FDI	Foreign Direct Investment occurs when a firm invests resources in business activities outside its home country.
Moore's Law	Premise that the power of microprocessor technology doubles & its cost of production drops in half every 18 mo's.
Stock of FDI	total accumulated value of foreign owned assets at a given time.
MNE	Multinational enterprise any business that has productive activities in 2 + countries.
Political economy	political, economic, and legal sytems of a country are interdependent; they interact and influence each other.
Political system	system of govt in a nation
Collectivism	political system that stresses the primary of collective goals over individual goals
Plato	believed that society should ve stratified into classes with those best suited to rule
Socialism	political system that believes in state ownership of a country's means of production, distribution, & exchange so that all can benefit
Communits	Those who believe that socialism can only be realized through violent revolution & totalitarian dictatorship
Social Democrats	Those who believed in achieving socialism through democratic means
Individualism	The philosophy that an individual should have freedom in his or her economic & political pursuits.
Representative Democracy	Citizens periodically elect individuals to represent them in govt functions
Communist Totalitarian	Advocating socialisism can only be achieved through a totalitarian dictatorship
Right-Wing Totalitarianism	Politial pwr is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts political freedom & speech
Tribal Totalitarianism	Political system that a party or group represent interests of a particular tribe monopolizes political pwr
Market Economy	Interaction of supply & demand determines the quantity in which goods & sercvices are produced
Command Economy	Govt plans the allocation of resources
Legal System	rules that regulate behavior by which the laws of a country are enforced
Common Law	System of law based on tradition, precedent, & custom
Civil Law System	system of law based on a derailed set of written laws and codes
Theocratic Law System	system of law based on religious teachings
Property Rights	Bundle of legal rights over the use to which a resource is put and over the use of any income that may be derived
Organization Culture	refers to values & norms shared among employees of an org.
Quota Rent	extra profit producers make when supply is artifically limited by an export quota
Local Content Requirement	A requirement that some specific fraction of a good be produced domestically
Administrative Trade Policies	rules adopted by govts that can be used to restrict imports or boost exports
Dumping	Selling goods in a foreign market below costs of production
Countervailing Duties	Antidumping Policies
Antidumping Policies	designed to punish foreign firms that engage in dumping
Helms Burton Act	passed in 1996, this law allows Americans to sue foreign firms that use Cuban property confiscated from them during Cuba's 1959 revolution
D'Amato Act	Passed in 1996, this law allows Americans to sue foreign firms that use property in Libya or Iran confiscated from Americans
Infant Industry Argument	Proposal that developing countries have a potential comparative adcantage in manufacturing
Strategic Trade Policy	Govt policy aimed at either helping the countries domestic firms retain first-mover gains
Corn Laws	placed a high tariff on imports of foreign corn
Smoot Hawley Act	passed in 1930, US law erected a wall of tariff barriers against imports
Greensdield Investment	establisment of a new operation in a foreign country
Flow of FDI	amount of FDI UNDERTAKEN OVER A GIVEN TIME PERIOD; NORMALLY A YR
Stock of FDI	total accumulated value of foreign owned assets at a given time
Gross fixed capital formation	summarizes the totsl smount of capital invested in factories, stores,etc
Oligopoly	Industry component of a limited number of large firms
Multipoint Competition	arises when two or more enterprises encounter each other in different reional markets, etc
Eclectic Paradigm	Theory that combining localtion specific assets or resource endowmenrs and the firms own unique assets often requires FDI.
Exporting	sale of products produced in 1 country to residentsof another country
Licensing	occurs when a firm (licensor) grants a foreign entity (licensee) the right to produce its product, use its production processes, etc
Location-specific advantages	advantages that arise from utilizing resource endowments or assets thar are tied to a particular foreign location & that a firm finds valuable to combine with its own unique assets, etc
Pragmatic Nationalism	FDI has both benefits & costs
Balance of Payment Accounts	national accounts that track both payments to and receipts from foreigners
Current Account	in the balance of payments, this records transactions involving the esport or import of goods & services
Offshore Production	FDI undertaken to serve the house market
Regional Economic Integration	Agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barrirtd to the free flow of goods
Free Trade Area	Area in which all barriers to the trade of goods & services among member countries are removed
EFTA	includes norway, iceland,switzerland; most enduring free tade agreement
Customs Union	group of countries committed to eliminating tade barriers & adopting a common external trade policy
Common Market	has no barriers to trade ntwn member countries Pg. 265
Economic Union	involes the free flow of products and factors of production btwn member countries & the adoption of a common external trade policy
Political Union	central political apparatus coordinates the economic, social, & foreign policy
Trade creation	occurs when high cost domestic producers are replaced by low cost producers within the free trade area.
Trade diversion	occurs when lower cost external suppliers are replaced by higher costs suppliers w/in the free trade area
Treaty of Rome	provided the cration of a m\common market
Maastricht Treaty	Treaty committing members of the EC to adopt a common currency
Andean Pact	Agreement unites Bolivi, Chile, Ecuador, Peru
Mercosur	Free trade pact btwn Brazil, Argentina, Paraguay, Venezula, etc
Foreign Exchange Rate	Rate @ which 1 currency is converted into another.
Foreign Exchange Market	A market for converting the currency of 1 country into that of another country.
Foreign Exchange Risk	Ris that changes in exchange rates will hurt the probabibility of a business deal
Currency Speculation	Moving funds from one currency to another over the short term in hpoes of profiting from shifts in exchange rates
Hedging	Insuring 1's bus against froeign exchage risk by using forward exchanges or currency swaps.
Spot Exchange Rate	Rate @ which a foreign exchange dealer converts currency on any particular day.
Forward Exchange	When 2 parties agree to exchange currency & execute a deal @ some specific date in the future.
Currency Swap	simultaneous purchase & sale of a given amount of foreign exchange for two different value dates. pg. 301
Arbitrage	Purchase of securitir\es in 1 market for immediate resale in another market to profit from a price discrepancy.
Law of 1 Price	principle that in comparative markets free of transportation costs & barriers to trade, identical products sold in diff countries must sell of the same price
Efficient Market	Market in which prices reflect all avail info & trade is not restricted.
Relatively Efficent Market	Market in which few impediments to intl trade & investment exists.
PPP theory predicts	that changes in relative prices will result in change in exchange rates
PPP theory predits	that exchange rates are determined by relative pricesm & changes in relative prices will result in a change in exchange rates.
Govt policy determines	whether the rate of growth in a country's money suppky is grater then the rate of growth in output.
Purchasing Power Parity Puzzle	failure of a strong link betwn relative inflation rates & exchange rate movements pg 309
Fisher effect	Theory that nominal interest rates in 4ach country equal the required real rate of interest & expected rate of inflation.
Mercantilism	Economic philosophy advocating that countries should simultaneously encourage exports and discourage imports.
Zero sum game	A situation in which a gain by one country results in a loss by another.
Absolute Advantage	When 1 county is more efficient than another country in producing a particular product. pg 161
PPF Production Possibility Frontier	Various output possiblities a country can produce from its resource pool. pg 161
Factor Endowments	Extent to which a country is endowed with such resources as land, labor, and capital.