Glossary of Terms: Globalization, Economics, Business, Law, and Politics, Quizzes of International Business

Download Glossary of Terms: Globalization, Economics, Business, Law, and Politics and more Quizzes International Business in PDF only on Docsity! TERM 1 Globalization DEFINITION 1 Trend away from distinct national economic units and toward one huge global market. TERM 2 Globalization of markets DEFINITION 2 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 3 Globalization of production DEFINITION 3 Trend by individual firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost and quality of factors of production. TERM 4 Factors of production DEFINITION 4 Inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how. TERM 5 General Agreement of Tariffs and Trade (GATT) DEFINITION 5 International treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO. TERM 6 World Trade Organization (WTO) DEFINITION 6 The organization that succeeded the General Agreement on Tariffs and Trade (GATT) as a result of the successful completion of the Uruguay Round of GATT negotiations. TERM 7 International Monetary Fund (IMF) DEFINITION 7 International institution set up to maintain order in the international monetary system. TERM 8 World Bank DEFINITION 8 International institution set up to promote general economic development in the world's poorer nations. TERM 9 United Nations DEFINITION 9 An international organization made up of 191 countries headquartered in New York City, formed in 1945 to promote peace, security, and cooperation. TERM 10 International trade DEFINITION 10 When a firm exports goods or services to consumers in another country. TERM 21 Social democrats DEFINITION 21 Those committed to achieving socialism by democratic means. TERM 22 Privatization DEFINITION 22 The sale of state-owned enterprises to private investors TERM 23 Individualism DEFINITION 23 An emphasis on the importance of guaranteeing individual freedom and self-expression TERM 24 Democracy DEFINITION 24 Political system in which government is by the people, exercised either directly or through elected representatives. TERM 25 Totalitarianism DEFINITION 25 Form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited. TERM 26 Representative democracy DEFINITION 26 A political system in which citizens periodically elect individuals to represent them in government. TERM 27 Communist totalitarianism DEFINITION 27 A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship. TERM 28 Theocratic totalitarianism DEFINITION 28 A political system in which political power in monopolized by a party, group, or individual that governs according to religious principles. TERM 29 Tribal totalitarianism DEFINITION 29 A political system in which a party, group, or individual that represents the interest of a particular tribe (ethnic group) monopolizes political power TERM 30 Right-wing totalitarianism DEFINITION 30 A political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, often on the grounds that it would lead to the rise of communism. TERM 31 Market economy DEFINITION 31 An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced. TERM 32 Command economy DEFINITION 32 An economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government. TERM 33 Legal system DEFINITION 33 System of rules that regulate behavior and the processes by which the laws of a country are enforced and through which redress of grievances is obtained. TERM 34 Common law DEFINITION 34 A system of law based on tradition, precedent, and custom; when law courts interpret common law, they do so with regard to these characteristics TERM 35 Civil law system DEFINITION 35 A system of law based on a very detailed set of written laws and codes. TERM 46 Copyright DEFINITION 46 Exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and dispose of their work as they see fit. TERM 47 Trademark DEFINITION 47 Designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products. TERM 48 World Intellectual Property Organization DEFINITION 48 An international organization whose members sign treaties to agree to protect intellectual property. TERM 49 Paris Convention for the Protection of Industrial Property DEFINITION 49 International agreement to protect intellectual property. TERM 50 Product safety laws DEFINITION 50 Set certain safety standards to which a product must adhere TERM 51 Product liability DEFINITION 51 Involves holding a firm and its officers responsible when a product causes injury, death, or damage. TERM 52 Gross national income (GNI) DEFINITION 52 The yardstick for measuring economic activity of a country, this measures the total annual income of a nation's residents. TERM 53 Purchasing power parity (PPP) DEFINITION 53 An adjustment in gross domestic product pr capita to reflect differences in the cost of living. TERM 54 Human Development Index (HDI) DEFINITION 54 An attempt by the UN to assess the impact of a number of factors on the quality of human life in a country. TERM 55 Innovation DEFINITION 55 Development of new products, processes, organizations, management practices, and strategies. TERM 56 Entrepreneurs DEFINITION 56 Those who first commercialize innovations. TERM 57 Deregulation DEFINITION 57 Removal of government restrictions concerning the conduct of a business. TERM 58 First-mover advantages DEFINITION 58 Advantages accruing to the first to enter a market. TERM 59 Late-mover disadvantages DEFINITION 59 Handicaps experienced by being a late entrant in a market. TERM 60 Political risk DEFINITION 60 The likelihood that political forces will cause drastic canges in a country's business environment that will adversely affect the profit and other goals of a particular business enterprise. TERM 71 Group DEFINITION 71 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 each other's behavior. TERM 72 Social strata DEFINITION 72 Hierarchical social categories often based on family background, occupation, and income. TERM 73 Social mobility DEFINITION 73 The extent to which individuals can move out of the social strata into which they are born. TERM 74 Caste system DEFINITION 74 A system of social 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 75 Class system DEFINITION 75 A system of social stratification in which social status is determined by the family into which a person is born and by subsequent socioeconomic achievements; mobility between classes is possible. TERM 76 Class consciousness DEFINITION 76 A tendency for individuals to perceive themselves in terms of their class background. TERM 77 Religion DEFINITION 77 A system of shared beliefs and rituals concerned with the realm of the sacred. TERM 78 Ethical systems DEFINITION 78 A set of moral principles, or values, that are used to guide and shape behavior. TERM 79 Power distance DEFINITION 79 Theory of how a society deals with the fact that people are unequal in physical and intellectual capabilities. TERM 80 Individualism versus collectivism DEFINITION 80 Theory focusing on the relationship between the individual and his or her fellows; in individualistic societies, the ties between individuals are loose and individual achievement is highly valued; in societies where collectivism is emphasized, ties between individuals are tight, people are born into collectives, such as extended families, and everyone is supposed to look after the interests of her or her collective. TERM 81 Uncertainty avoidance DEFINITION 81 Extent to which cultures socialize members to accept ambiguous situations and to tolerate uncertainty. TERM 82 Masculinity versus femininity DEFINITION 82 Theory of the relationship between gender and work roles.In masculine cultures, sex roles are sharply differentiatedIn feminine cultures, sex roles are less sharply distinguished, and little differentiation is made between men and women in the same job TERM 83 Confucian dynamism DEFINITION 83 Theory that Confucian teachings affect attitudes toward time, persistence, ordering by stats, protection of face, respect for tradition, and reciprocation of gifts and favors. The units of resources required to producea good are assumed to remain constant no matter where one is on a country's production possibility frontier. TERM 84 Ethnocentrism DEFINITION 84 Behavior that is based on the belief in the superiority of one's own ethnic group or culture; often shows disregard or contempt for the culture of other countries. TERM 85 Business ethics DEFINITION 85 Accepted principles of right or wrong governing the conduct of businesspeople. TERM 96 Kantian ethics DEFINITION 96 The belief that people should be treated as ends and never as means to the ends of others. TERM 97 Rights theories DEFINITION 97 A 20th-century theory that recognizes that human beings have fundamental rights and privileges that transcend national boundaries and cultures. TERM 98 Universal Declaration of Human Rights DEFINITION 98 A United Nations document that lays down the basic principles of human rights that should be adhered to. TERM 99 Just distribution DEFINITION 99 A distribution of goods and services that is considered fair and equitable TERM 100 Code of Ethics DEFINITION 100 A business's formal statement of ethical priorities. TERM 101 Stakeholders DEFINITION 101 The individuals or groups that have an interest, stake, or claim in the actions and overall performance of a company. TERM 102 Internal stakeholders DEFINITION 102 People who work for or own the business such as employees, directors, and stockholders. TERM 103 External stakeholders DEFINITION 103 Individuals or groups that have some claim on a firm such as customers, suppliers, and unions. TERM 104 Balance-of-payment accounts DEFINITION 104 National accounts that track both payments to and receipts from foreigners. TERM 105 Current account DEFINITION 105 In the balance of payments, records transactions involving the export or import of goods and services. TERM 106 Current account deficit DEFINITION 106 Occurs when a country imports more good, services, and income than it exports. TERM 107 Current account surplus DEFINITION 107 Occurs when a country exports more goods, services, and income than it imports TERM 108 Capital account DEFINITION 108 Records onetime changes in the stock of assets TERM 109 Financial account DEFINITION 109 Records transactions that involves the purchase or sale of assets.