Athletic Training
Terms
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- Foreign Direct Investment (FDI)
- direct investment in business operations in a foreign country; active, hands-on involvement
- Foreign Portfolio Investment (FPI)
- investment in foreign financial instruments; passive, hands-off involvement
- General Agreement on Tariffs and Trade (GATT)
- international agreement developed by UN in 1947, signed by 23 major economic powers in 1948 that committed signatories to lowering trade barriers, founded WTO in 1994
- globalization
- trend away from distinct national economies toward one worldwide economy
- globalization of markets
- moving away from national markets isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national markets are merging into a single global market
- globalization of production
- trend by firms to locate each part of its productive process to wherever they can take advantage of differences in cost and quality
- international business
- any firm that engages in international trade or investment
- multinational enterprise (corporation) (MNE or MNC)
- a firm that owns business operations in more than one country
- stock of FDI
- the total accumulated value of foreign-owned assets at a given point in time
- flow of FDI
- amount of FDI that has taken place over a given period of time (most commonly, one year)
- World Trade Organization
- successor organization to GATT, a self-standing institution chartered with authority to adjudicate trade disputes between nations and render a decision by which both parties must abide
- Division of Labor
- the way various tasks are apportioned within a social grouping
- Civil law
- a system of law based on a very detailed set of written laws and codes
- collectivism
- either a philosophy or a political system embodying the notion that collective goals are primary and individual goals are expendable
- command economy
- an economic system based on the premise of central planning, whereby the government mandates what goods must be produced and what services supplied
- common law
- a system of law based on tradition, precedent, and custom, often within the context of a constitution outlining basic rights and principles
- communism
- an atheistic, materialist, collectivist philosophy manifested in a political system that does not recognize individual rights, private property in the means of production, and thus has a command economy
- contract
- an agreement that specifies mutually agreed upon terms for an exchange (a quid pro quo)
- copyright
- the granting, by law, of exclusive rights for authors, composers, artists, and publishers to profit from their creative efforts
- democracy
- political system characterized by the principle of majority rules
- deregulation
- a policy of reducing what are believed to be needlessly costly, counterproductive government restrictions and controls on business
- economic risk
- the possibility that changes in the business climate outside a business' control in a foreign country
- Human Development Index
-
a more advanced way of comparing standards of living between countries than merely citing income per capita figures. Measured 3 ways:
1. life expectancy at birth
2. educational attainment
3. whether average incomes are adequate enough to pay for basic needs - individualism
- political philosophy holding that individual rights should be protected from gov't encroachments
- legal risk
- the possibility that a foreign business partner will opportunistically break a contract or violate your intellectual property rights
- market economy
- aka the private property order; in which prices and the quantities of goods and services produced are a function of supply and demand decisions made voluntarily by private owners of property
- mixed economy
- an economy where some sectors feature private ownership and free-market mechanisms, while other sectors have significant government ownership (or control) and planning
- patent
- the granting of exclusive rights to the manufacture, use, or sale of a newly-invented or discovered procss or product
- political risk
- the likelihood of a political changed causing drastic changes in a country's business environment
- privatization
- the sale of state-owned enterprises to private investors
- purchasing power parity (PPP)
- an adjustment to the raw measure of GDP (gross domestic product)per capita income to reflect differences in cost of living
- socialism
- the political system characterized by government ownership of the means of production
- theocracy
- rule by religious authorities claiming to be fulfilling God's laws
- totalitarianism
- political system in which the government has power to govern every aspect of the lives of citizens
- trademarks
- the granting of exclusive rights to specific designs, names, and images used to differentiate or identify their company or product
- caste system
- a system of social stratification in which social position is determined by the family into which a person is born and is stuck there
- cross-cultural literacy
- understanding how the culture of a country affects the way business is practiced
- ethnocentric behavior
- acting on the belief in the superiority of one's own ethnic group or culture, or showing disregard or contempt for foreign cultures
- guanxi
- Chinese word: literally, "relations," but in a business context it refers to having connections
- mores
- norms seen as central to the functioning of a society
- norms
- social rules and guidelinesfor what behavior is appropriate in a given situation
- values
- abstract ideas about what is believed to be good, right, desireable
- Geert Hofstede
-
Dutch social scientist who studied cultural difference that affect they was individuals behave in business contexts. 5 variables:
1. power distance
2. individualism
3. masculinity
4. uncertainty avoidance
5. long term vs. short term orientation - Cultural relativism
- the belief that firms should adopt the ethical norms prevalent in the culture where they are operating
- ethical dilemma
- a situation in which there is no ethically acceptable solution
- facilitating payments
- aka "speed money" or "grease payments," these are "tips" that foreigners customarily insist upon receiving in order to expedite things, rather than bribes to win contracts
- Foreign Corrupt Practices Act
- 1977 law in the US outlawing the bribing of foreign government officials to gain business
- organization culture
- the values and norms that are shared by the organization's employees
- righteous moralist
- one who claims that a MNE's home-country ethical standards should be followed in foreign countries
- social responsbility
- the idea that businesspersons should consider the social consequences of their business activities
- utiliarian ethics
- the belief that the morality of deeds and policies are determined by their consequences
- Ethnocentric staffing policy
- a MNE's staffing policy that fills all key management positions with parent-country nationals
- expatriate failure
- the premature departure of an expat from a host country
- expatriate manager
- a manager working in a country other than his own
- geocentric staffing policy
- a staffing policy in which the best people are sought for key jobs regardless of nationality
- human resources management (HRM)
- the activites an organization carries out to use its personnel effectively
- polycentric staffing policy
- a staffing policy in which host-country nationals are chosen to manage subsidiaries in their own country, while parent-country nationals occupy key positions at HQ