Global Business: Political Risks, Risk Assessment, and CSR, Quizzes of International Management

Download Global Business: Political Risks, Risk Assessment, and CSR and more Quizzes International Management in PDF only on Docsity! TERM 1 globalism DEFINITION 1 global competition characterized by networks of international linkages that bind countries, institutions, and people in a interdependent global economy TERM 2 Three regional free trade blocs DEFINITION 2 Western Europe, Asia, and the Americas TERM 3 Multinational Corporation DEFINITION 3 A corporation that engages in production or service of activities through its own affiliates in several countries, maintains control over the policies of those affiliates, and managers from a global persepctive TERM 4 macropolitical risk DEFINITION 4 an event that effects all the foreign firms doing business in a country or region TERM 5 micropolitical risk DEFINITION 5 an event that affects one industry or company or only a few companies TERM 6 Political Risks DEFINITION 6 any governmental action or politically motivated event that could adversely affect the long-run profitability or value of a firm TERM 7 Nationalization DEFINITION 7 refers to forced sale of an MNC's assests to local buyers, with some compensation to the firm, perhaps leaving a minority ownership with the MNC. TERM 8 Expropriation DEFINITION 8 occurs when local government seizes and provides inadequate compensation for the foreign-owned assets of an MNC TERM 9 Common law DEFINITION 9 used in the United States and 26 other countries of English origin or influence, past court decisions act as precedents to the interpretation of the law and to common custom TERM 10 civil law DEFINITION 10 based on a comprehensive set of laws organized into a code TERM 21 Ethical relativism DEFINITION 21 the company adopts the local moral code of whatever country in which it is operating. TERM 22 Moral Universalism DEFINITION 22 the need for a moral standard that is accepted by all cultures TERM 23 The Sweatshop Code of Conduct DEFINITION 23 a ban on forced labor, abuse, and discrimination, requires companies to provide a healthy and safe work environment, and requires companies to pay at least the local prevailing minimum wage TERM 24 The Electronic Industry Code of Conduct (EICC) DEFINITION 24 bans forced and child labor and excessive overtime, includes basic environmental requirements, and requires audits of overseas suppliers TERM 25 China's Economic Status DEFINITION 25 is very attractive to foreign manufacturers and other firms. Its now the worlds third largest manufacturer after the US and Japan. Growth in higher-skilled jobs is occurring as well TERM 26 Parochialism DEFINITION 26 expecting foreigners to follow your pattern and culture; being narrow in scope TERM 27 Culture DEFINITION 27 is the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members TERM 28 Protectionism DEFINITION 28 host country institutes a partial or complete closing of borders to withstand competitive foreign products, using tariff and nontariff barriers, such as those used in Japan TERM 29 governmentalism DEFINITION 29 the government uses it policy-setting role to favor national interests, rather than relying on market forces TERM 30 Individualism DEFINITION 30 the tendency for people to look after themselves and their immediate families only and to neglect the needs of society TERM 31 Collectivism DEFINITION 31 entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions TERM 32 Communication DEFINITION 32 process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts TERM 33 noise DEFINITION 33 anything that serves to undermine the communication of the intended meaning TERM 34 Cultural noise DEFINITION 34 the cultural variables that undermine the communications of intended meaning TERM 35 Attribution DEFINITION 35 process in which people look for an explanation of another person's behavior