3660 part 1

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dumping: 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
ethical dilemmas: situations in which none of the available alternatives seem ethically acceptable
quota rent: extra profit that producers make when supply is artificially limited by an import quota
masculinity versus femininity: relationship between gender and work roles
absolute advantage: a country can produce a product more efficiently than any other country in producing it
administrative trade policies: bureaucratic rules designed to make it difficult for imports to enter a country
balance of payments accounts: track both its payments to and its receipts from other countries
norms: social rules and guidelines that prescribe appropriate behavior in particular situations
licensing: granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold
legal system: rules/ laws that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained
specific tariff: fixed charge for each unit of a good imported
market economy: all productive activities are privately owned, as opposed to being owned by the state
uncertainty avoidance: extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty
Smoot-Hawley Act: enormous wall of tariff barriers
United Nations: preserve peace through international cooperation and collective security
exporting: producing goods at home and then shipping them to the receiving country for sale
tariff rate quota: lower tariff rate is applied to imports within the quota than those over the quota
common market: no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members
stock of FDI: total accumulated value of foreign-owned assets at a given time
purchasing power parity (PPP): adjustment in gross domestic product per capita to reflect differences in the cost of living
cultural relativism: belief that ethics are nothing more than the reflection of a culture
property rights: legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource
privatization: parties selling state-owned enterprises to private investors
organization culture: values and norms that employees of an organization share
International Monetary Fund: maintain order in the international monetary system
free trade: government does not attempt to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country
social mobility: extent to which individuals can move out of the strata into which they are born
international business: any firm that engages in international trade or investment
ethical systems: set of moral principles, or values, that are used to guide and shape behavior
World Bank: promote economic development
copyrights: exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit
common law: based on tradition, precedent, and custom
European Commission: responsible for proposing EU legislation, implementing it, and monitoring compliances with EU laws by member states
stakeholders: individuals or groups that have an interest, claim, or stake in the company, what it does, and how well it performs
confucian dynamism: captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors
United Nations Convention on Contracts for the International Sales of Goods (CIGS): establishes a uniform set of rules governing certain aspects of making and performing everyday commercial contracts between sellers and buyers who have their places of business in different nations
command economy: government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold
trade diversion: higher cost suppliers replace lower cost external suppliers within the free trade area
multipoint competition: two or more enterprises encounter each other in different regional markets, national markets, or industries
globalization: shift toward a more integrated and interdependent world economy
internalization theory/ market imperfections: explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets
values: abstract ideas about what a group believes t be good, right, and desirable
offshore production: FDI undertaken to serve the home market
theocratic law system: one in which the law is based on religious teachings
social structure: basic social organization
theocratic totalitarianism: political system in which political power is monopolized by a party, group, or individual that governs according to religious principles
d'amato act: Americans allowed to sue foreign firms that use property in Libya and Iran
subsidy: government payment to a domestic product
totalitarianism: one person/ political party exercises absolute control over all spheres of human life and prohibits opposing political parties
ad valorem tariffs: levied as proportion of the value of the imported good
patent: grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention
stock of foreign direct investment: total cumulative value of foreign investments
intellectual property: property that is the product of intellectual activity
voluntary export restraint (VER): quota on trade imposed by the exporting country
economic risks: likelihood that economic mismanagement will cause drastic changes in a country's business environment that hurt the profit and other goals of a particular business enterprise
outflows of FDI: flow of FDI out of a country
oligopoly: industry composed of a limited number of large firms
strategic trade policy: raise national income if it can somehow ensure that the firm that gain first mover advantages in an industry are domestic rater than foreign enterprises, pay to intervene in an industry by helping domestic firms overcome the barriers to entry created by foreign firms that have already reaped first mover advantages
power distance: focused on how society deals with the fact that people are unequal in physical and intellectual capabilities
Treaty of Rome: established the European Community
inflows of FDI: flow of FDI into a country
Convention on Combating Bribery of Foreign Public Officials in International Business Transactions: OECD agreement to make the bribery of foreign public officials a criminal offense
utilitarian approaches: ethics hold that the moral worth of actions or practices is determined by their consequences
class consciousness: condition where people tend to perceive themselves in terms of their class background, and this shapes their relationships with members of other classes
European Parliament: directly elected by populations of the member states, primarily a consultative rather than legislative body
zero-sum game: one in which a gain by one country results in a loss by another
external stakeholders: all other individuals and groups that have some claim on the firm
flow of FDI: amount of FDI undertaken over a given time period
code of ethics: formal statement of ethical priorities a business adheres to
legal risk: likelihood that a trading partner will opportunistically break a contract or expropriate property rights
public action: violate property rights occurs when public officials extort income, resources, or property itself from property holders
tribal totalitarianism: a political system in which a party, group, or individual that represents the interest of a particular tribe (ethnic group) monopolizes political power
import quota: direct restriction on the quantity of some good that may be imported into a country
Court of Justice: one judge from each country, supreme court of appeals court for EU law
mercantilism: country's best interests to maintain a trade surplus, to export more than it imported
communist totalitarianism: version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship
externalities: knowledge spillover
trade creation: low-cost producers within the free trade area replace high-cost domestic producers
individualism: individual should have freedom in his or her economic and political pursuits
democracy: government by the people, exercised either directly or through elected representatives
local content requirement: requirement that some specific fraction of a good be produced domestically
human development index (HDI): measure the quality of human life in different nations: life expectancy at birth, educational attainment, average incomes
antidumping policies: designed to punish foreign firms that engage in dumping
right-wing totalitarianism: permits some individual economic freedom, but restricts individual political freedom, on the grounds that it would lead to the rise of communism
current account: tracks the export and import of goods and services
social strata: societies are stratified on a hierarchical basis into social categories
optimal currency area: similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy
individualism versus collectivism: theory focusing on the relationship between the individual and his or her fellows
Council of the European Union: ultimate controlling authority within the EU since draft legislation from the commission can become EU law only if the council agrees
tariff: tax levied on imports
constant returns to specialization: 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
countervailing duties: antidumping duties, special tariff and stay in place for up to 5 years
North American Free Trade Agreement (NAFTA): free trade area between Canada, Mexico, and the United States
culture: system of values and norms that are shared among a group of people and that when taken together constitutes a design for living
internal stakeholders: individuals or groups who work for or own the business
helms-burton act: allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution
European Union (EU): product of two political factors: devastation of Western Europe, desire to hold their own politically and economically
foreign direct investment (FDI): firm invests resources in business activities outside its home country
communists: socialism can be achieved only through violent revolution and totalitarian dictatorship
gross national income (GNI): common measure of economic development, total annual income received by residents of a nation
collectivism: political system that stresses the primacy of collective goals over individual goal
Paris Convention for the Protection of Industry Property: international agreement to protect intellectual property; signed by 96 countries
caste system: closed system of stratification in which social position is determined by the family into which a a person is born, and change in that position is usually not possible during an individual's lifetime
Kantian ethics: people should be treated as ends and never purely as means to the ends of others
social responsibility: idea that businesspeople should consider the social consequences of economic actions when making business decisions, and there should be a presumption in favor of decisions that have both good economic and social consequences
socialist democrats: achieve socialism by democratic means
ethnocentrism: belief in the superiority of one's own ethnic group or culture
righteous moralists: multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries
multinational enterprise (MNE): any business that has productive activities in two or more countries
infant industry argument: 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
General Agreement on Tariffs and Trade (GATT): international treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO
product safety laws: set certain safety standards to which a product must adhere
international trade: firm exports goods/services to consumers in another country
just distribution: fair and equitable
folkways: routine conventions of everyday life
class system: less rigid form of social stratification in which social mobility is possible
innovation: development of new products, processes, organizations, management practices, and strategies
World Intellectual Property Organization: designed to protect intellectual property
trademarks: designs and names, by which merchants or manufacturers designate and differentiate their products
free trade area: all barriers to the trade of goods and services among member countries are removed
Universal declaration of human rights: agreement that establishes basic principles that should be adhered to irrespective of the culture
mores: norms that are seen as central to the functioning of a society and to its social life
gross fixed capital formation: total amount of capital invested in factories, stores, office buildings, and the like
entrepreneurs: first commercialize innovations
Foreign corrupt practices act: makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority, and it requires all publicly traded companies to keep detailed records that would reveal whether a violation of the act has occurred
civil law system: detailed set of laws organized into codes
political union: central political apparatus coordinates the economic, social, and foreign policy of the member states
socialists: few benefit at the expense of many, individual freedoms are not restricted
business ethics: accepted principles of right or wrong governing the conduct of businesspeople
factor endowments: extent to which a country is endowed with such resources as land, labor, and capital
regional economic integration: agreements among countries in a geographic region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other
customs union: eliminates trade barriers between member countries and adopts a common external trade policy
religion: system of shared beliefs and rituals that are concerned with the realm of the sacred
naive immoralist: if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either
contract: document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties invovled
new trade theory: 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 limited number of firms
group: 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 each other's behavior
contract law: body of law that governs contract enforcement
political system: system of government in a nation
globalization of markets: merging of historically distinct and separate national markets into one huge global marketplace
World Trade Organization (WTO): responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by WTO member states
SIngle European Act: committed member countries to work toward establishment of a single market
Maastricht Treaty: committed them to adopting a common currency
globalization of production: sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production
political risks: likelihood that political forces will cause drastic changes in a country's business environment that adversely affect the profit and other goals of a business enterprise
society: group of people who share a common set of values and norms
product liability: holding a firm and its officers responsible when a product causes injury, death, or damage
rights theories: human beings have fundamental rights and privileges that transcend national boundaries and cultures
ethical strategy: strategy, or course of action, that does not violate these accepted principles
European Free Trade Association (EFTA): free trade association including Norway, Iceland, and Switzerland
private action: theft, piracy, blackmail, and the like by private individuals or groups
representative democracy: citizens periodically elect individuals to represent them
greenfield investment: establishment of a new operation in a foreign country
economic union: free flow of products and factors of production between member countries and the adoption of a common external trade policy, but also requires a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy
factors of production: labor, energy, land, and capital
location-specific advantages: advantages that arise from utilizing resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets
deregulation: removing legal restrictions to the free play of markets, the establishment of private enterprises ,and the manner in which private enterprises operate
economies of scale: unit cost reductions associated with a large scale of output
cross-cultural literacy: understanding of how cultural differences across and within nations can affect the way business is practiced

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Number of cards 159