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international bus
international business review
| Question | Answer |
|---|---|
| When people and organizations around the world begin to connect through business, economics, and social issues | globalization |
| What is the key driving force of globalization? | Generally, organizations go global for expanding their markets and increasing their sales and profits. One of the major forces of globalization is the expansion of communication systems. |
| What are the five global institutions? | World Trade Organization, International Monetary Fund, United Nations Conference on Trade and Development, Organization for Economic Cooperation and Development (OECD), G5 |
| Formed in 1995 to replace (GATT), which was started in 1948. GATT replaced it because it was biased in favor of developed countries. Helps the global organizations to conduct their businesses. Geneva based & represents more than 97% of world’s trade. | World Trade Organization |
| established in 1945, consists of 187 member countries. It works to secure financial stability, develop global monetary cooperation, facilitate international trade, and reduce poverty and maintain sustainable economic growth around the world. Based in DC. | International Monetary Fund |
| established in 1964, It provides a forum where the developing countries can discuss the problems related to economic development. Formulate the policies related to areas of development, such as trade, finance, transport, and technology.Based in Geneva | United Nations Conference on Trade and Development |
| involves removing trade barriers and coordinating the trade policies of the countries. | Regional Economic Integration: |
| political system in which government is by the people, exercised either directly or through elected representatives. | Democracy |
| is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties. | Totalitarianism |
| A system where factors of production are privately held; decisions are made by the business in response to supply and demand. | market based economy |
| An economy where supply and price are regulated by the government rather than market forces. The former Soviet Union was an example of a command economy | command based economy |
| The body of law developed from custom and tradition as recognized by judicial decisions. Largely based on previous court decisions. (often called judge-made law) cases are judged with reference to three characteristics: tradition, precedent, and custom. | common law |
| is the part of a country's set of laws which is concerned with the private affairs of citizens, for example marriage and property ownership rather than crime. | civil law |
| A system in which society, usually in the form of the government , owns and controls the means of production | socialism |
| An economic system based on private property and free enterprise | capitalism |
| Interdependent political, economic, and legal systems of a country make up its. is the study of production and trade and their links with custom, government and law. | political economy |
| Modern socialism has been popularized largely through the work of ____. | Karl Marx |
| as of 1995 a council of the World Trade Organization is overseeing enforcement of much stricter intellectual property regulations. These regulations oblige WTO members to grant and enforce patents lasting at least 20 years & copyrights lasting 50 years. | Trade-Related Aspects of Intellectual Property Rights (TRIPS) |
| What is the key component of a country's legal system? | Regulating business practices, Defining the rights and obligations of those involved in business transactions, Monitoring the way business transactions are executed. |
| The market value of all final goods and services produced domestically in one year | GDP |
| measures the total monetary value of the total output produced by a country's residents. | GNP |
| is an economic theory that compares different countries' currencies through a "basket of goods" approach. | Purchasing power parity (PPP) |
| What are the main drivers of economic growth? | Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement. |
| What are the means by which the state can expropriate the profits from innovation and economic growth? | taxation, demands from state bureaucrats for kickbacks in return for granting an individual or firm a license to do business in a certain area. |
| What is a mixed economies in terms of a country’s economic system? | a system that combines aspects of both capitalism and socialism. |
| Which is the role of United Nations in the world economic growth. | Promote inclusive and sustainable economic growth, employment |
| Which index UN created and used to measure the quality of life in different nations? | Human Development Index (HDI) |
| The act of cutting the restrictions and regulations that government places on business. | deregulation |
| Hofstede's culture dimensions | Individualistic/ collectivism, masculine/feminine, uncertainty avoidance, power distance, time perspective, indulgence/restraint |
| how personal needs and goals are prioritized vs. the needs and goals of the group | Individualistic/ collectivism |
| masculine societies have different rules for men and women, less so in feminine cultures | masculine/feminine, |
| how comfortable are people with changing the way they work or live or prefer the known systems | uncertainty avoidance |
| the degree people are comfortable with influencing upwards. accept of inequality in distribution on power in society. | power distance |
| long term perspective, planning for future, perseverance values vs. short time past and present oriented. | time perspective, |
| allowing gratification of basic drives related to enjoying life and having fun vs. regulating it through strict social norms. | indulgence/restraint |
| The ability to interpret someone's unfamiliar and ambiguous gestures in just the way that person's compatriots and colleagues would. | culture intelligence |
| is understanding how the culture of a country affects the way business is practiced | cross-cultural literacy |
| prohibits US businesspersons from bribing foreign officials to secure advantageous contracts | Foreign Corrupt Practices Act (FCPA) |
| is a concept which broadens a business' focus on the financial bottom line to include social and environmental considerations. | triple bottom line |
| is an economic problem in which every individual tries to reap the greatest benefit from a given resource. | tragedy of the commons |
| is the ability of a country, individual, company or region to produce a good or service at a lower cost per unit than another entity that produces the same good or service. | Absolute advantage |
| States that a particular country of individual can produce a specific commodity at a lower opportunity cost than another country or individual. | comparative advantage |
| Eli F. Heckscher and Bertil Ohlin (1933) states that a country should? (This theorem won 1977 Nobel Memorial Prize in Economics) | export the product that intensively uses the country’s abundant resources and import the product that intensively uses the country’s rare resources |
| in economics is that a country with a higher capital per worker has a lower capital/labor ratio in exports than in imports | leontief paradox |
| a statement of all transactions made between entities in one country and the rest of the world over a defined period of time, such as a quarter or a year | Balance of Payments (BOP) |
| The balance of payments divides transactions in | two accounts: the current account and the capital/financial account |
| selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their "fair" market value | dumping |
| a government payment to a domestic producer. | subsidy |
| The extra profit that producers make when supply is artificially limited by an import quota is referred to as a | quota rent |
| specifies that government agencies must give preference to American products when putting contracts for equipment out to bid unless the foreign products have a significant price advantage. | Buy America Act, |
| a requirement that some specific fraction of a good be produced domestically. | local content requirement |
| bureaucratic rules designed to make it difficult for imports to enter a country | Administrative trade policies |
| is the value of the resident investors' equity in and net loans to enterprises in foreign economies. | outward FDI |
| is the value of foreign investors' equity in and net loans to enterprises resident in the reporting economy. | inward FDI |
| the amount of FDI over a period of time | flow |
| accumulated value of foreign owned assets at a given point in time | stock |
| has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors. | regional economic integration |
| levels of regional economic integration | free trade area, customs union, common market, economic union, and political union. |
| allows all member countries to trade freely, without barriers amongst themselves, but then also allows each country to determine their own level of barriers against any nonmembers | free trade area (ex: NAFTA)) |
| in addition to eliminating barriers among member countries, it also determines the trade policy that all members will follow when engaging with nonmember countries. | customs union |
| combines both (free trade and custom unions) and also includes the removal of barriers to the movement of labor and capital among members. Difficult to attain and can result in uneven benefits among member countries. | A common market |
| goes beyond the demands of a common market by requiring member nations to harmonize their tax, monetary, and fiscal policies and to create a common currency | economic union |
| This occurs when countries have gone through all the other levels of regional integration and then also opt to coordinate their political systems in regards to nonmember nation relations as well. | political union |
Created by:
normh80
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