Global Business Chapter 4 and 5 quiz

WTO's primary purpose

serve as a negotiating forum for member nations to dispute, discuss, and debate trade-related matters

value

something that we prefer over something else—whether it's a behavior or a tangible item.

pros of stable environment for business

staffing, operations, regulations, currency convertibility and free-flowing capital

proxemics

study of personal space

pros of creating regional agreements

trade creation, employment opportunities, consensus and cooperation

value dimensions

varying degrees of importance placed on those deeply felt views of what is right, good, and worthwhile Values, in this case, are broad preferences for one state of affairs over others, and they are mostly unconscious.

UN Global Compact

works to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. principle-based framework for businesses, stating ten principles in the areas of human rights, labor, the environment, and anti-corruption.

guanxi

Chinese for "connections" The Chinese practice of building networks for social exchange

Gulf Cooperation Council (GCC)

Formed in 1981, the GCC promotes cooperation between its member states in the fields of economy and industry. These member states include Kuwait, Bahrain, Qatar, Saudi Arabia, Oman and the United Arab Emirates. The GCC is a member of FATF, although its individual members are not.

North American Free Trade Agreement (NAFTA)

an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. USA, Canada, Mexico

Nemawashi

consensus building

four main types of regional economic integration

free trade area, customs union, common market, economic union

Ethics impacts global business

management, corruption, and corporate social responsibility.

Mercado Común del Sur (MERCOSUR)

The South American trading bloc, established in 1991. This group is the largest food producer in the world and also controls the largest energy and oil reserves on Earth.

high and low context

The degree to which individuals within a culture rely on contextual cues to convey and interpret meaning

Cons of creating regional agreements

Trade diversion Employment shifts and reductions Interdependence Loss of national sovereignty

Mexican maquiladoras

a factory that operates under preferential tariff programs established and administered by the United States and Mexico

World Trade Organization (WTO)

a permanent global institution to promote international trade and to settle international trade disputes The organization that succeeded GATT came into effect on January 1, 1995. It is the only institutional body charged with facilitating free and fair trade between member nations. free and fair trade largest global trade organization

Caribbean Community and Common Market (CARICOM)

a regional trade organization established in 1972 that includes former English colonies in the Caribbean Basin as its members

Association of Southeast Asian Nations (ASEAN)

a trade alliance that promotes trade and economic integration among member nations in Southeast Asia

polychronic cultures

people accomplish many different things at once

monochronic cultures

people tend to do one thing at a time

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

protect intellectual property between countries

General Agreement on Trade in Services (GATS)

reduce the barriers to trade in services

Conflict or blood diamonds

refer to diamonds mined in a war zone and sold to finance an insurgency, an invading army's war efforts, or a warlord's activity. The term is used to highlight the negative consequences of the diamond trade in certain areas, or to label an individual diamond as having come from such an area.

United States-Mexico-Canada Agreement (USMCA)

replacement to NAFTA

Geert Hofstede

An influential Dutch social psychologist who studied the interactions between national cultures and organizational cultures father of modern cross-cultural science and thinking

Andean Community

A 1969 agreement among Bolivia, Chile, Ecuador, Colombia, and Peru to establish a customs union

Subculture

A group of people with shared value systems based on common life experiences and situations

Edward T. Hall

A pioneer in studying the context of social interaction

United Nations

An international organization formed after WWII to promote international peace, security, and cooperation. was formed in 1945 at the end of World War II to replace the League of Nations, which had been formed in 1919. Its original goals remain the same today: to maintain international peace and security; to develop friendly relations between nations; and to foster international cooperation in solving economic, social, humanitarian, and cultural issues

African Economic Community (AEC)

An organization of African Union states establishing grounds for mutual economic development among the majority of African states.

Benelux countries

Belgium, Netherlands, Luxembourg

most-favored-nation clause (MFN)

It required that once a benefit, usually a tariff reduction, was agreed on between two or more countries, it was automatically extended to all other member countries. GATT's initial focus was trade barriers, such as tariffs, which are taxes placed on imports or exports.

cross-cultural understanding

The requirement that we reorient our mind-set and, most importantly, our expectations in order to accurately interpret the gestures, attitudes, and statements of the people we encounter from other cultures.

masculinity

The value dimension referring to how a society views traits that are considered feminine or masculine.

uncertainity avoidance

The value dimension referring to how much uncertainty a society or culture is willing to accept.

power distance

The value dimension referring to how openly a society or culture accepts or does not accept differences between people in hierarchies in the workplace, in politics, and so on.

Ethnocentrism

The view is that a person's own culture is central and other cultures are measured in relation to it.

fair trade

an institutional arrangement designed to help producers in developing countries achieve better trading conditions, including higher payments to producers as well as improved social and environmental standards. Fair trade typically refers to commodities, coffee, cocoa, wine, sugar, fresh fruit, chocolate, flowers, handicrafts, and gold.

culture

collective programming of our minds from birth

three principal categories of how cultures differ

context, space, and time

Paris Climate Agreement

dealing with greenhouse-gas-emissions mitigation, adaptation, and finance, signed in 2016.

national culture

defined by its geographic and political boundaries and includes even regional cultures within a nation as well as among several neighboring countries

Ringi Seido

formal Japanese review and decision-making process.

Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)

is a free-trade agreement between the US and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.

European Union

is a political and economic union of twenty-eight member states that are located primarily in Europe.

General Agreement on Tariffs and Trade (GATT)

is a series of rules governing trade that were first created in 1947 by twenty-three countries. By the time it was replaced with the WTO, there were 125 member nations. GATT has been credited with substantially expanding global trade, primarily through the reduction of tariffs. -rules governing trade -reduction of tariffs

Asia-Pacific Economic Cooperation (APEC)

is an inter-governmental forum for twenty-one Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.

long term orientation vs short term orientation

the dimension of a society's value orientation that reflects its attitude toward virtue or truth

Ethics

the principles of right and wrong that guide an individual in making decisions

organizational culture

the values, beliefs, and attitudes shared by organizational members Every organization has its own workplace culture