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Political systems do all EXCEPT define the people

A political system includes the structural dimensions and power dynamics of its government. They do not define people.

Collectivism

A political system that emphasizes collective goals as opposed to individual goals

Right-Wing Totalitarianism

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

Theocratic Totalitarianism

A political system in which political power is monopolized by a party, group, or individual that governs according to religious principles

Code of Ethics

A business's formal statement of ethical priorities

Foreign commerce has stopped and domestic businesses have closed in a country experiencing civil​ disorder, ethnic​ disorder, and insurrection. This situation illustrate A catastrophic political risk

A catastrophic political risk adversely affects the operations of every firm in the country. Threats such as ethnic​ discord, civil​ disorder, and insurrection fundamentally disrupt society and devastate the business environment for all companies.

A type of legal system that is based on judicial precedent is known as​ common law.

A common law system relies on​ tradition, judge-made​ precedent, and usage. It respects established case law in resolving disputes. Judicial officials refer to statutory codes and​ legislation, but only after considering the rules of the​ court, customs, judicial​ reasoning, prior court​ decisions, and principles of equity.

Contract

A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved

Multinational Enterprise

A firm that owns business operations in more than one country

In Hong​ Kong, citizens possess civil liberties and other democratic​ rights; however, a​ 1,200-member committee composed of handpicked elites chooses Hong​ Kong's Chief Executive. According to the Economist Intelligence​ Unit, the type of political system illustrate hybrid regime

A hybrid regime mixes democratic and totalitarian practices. The EIU identifies 36 countries​ (22.2% of​ countries), including Hong​ Kong, as hybrid regimes. In hybrid​ regimes, procedural and distributed irregularities often corrupt free and fair processes. Hong Kong has telltale aspects of a​ democracy, such as an impartial​ judiciary, civil​ liberties, independent​ media, and political parties.​ Still, authoritarian policies persist.

Political ideology stipulates how a society ought to govern itself and outlines the methods of how to do​ so

A political ideology stipulates how a society ought to govern itself and outlines the methods of how to do so. Based on this​ ideology, a society will have varying degrees of political freedom.

Tribal Totalitarianism

A political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power

Representative Democracy

A political system in which citizens periodically elect individuals to represent them in government

When an organization tends to believe that its business units abroad should act like local​ companies, it is known as Polycentrism

A polycentric organization believes that its action abroad should resemble the actions of local companies.

United Nations Convention on Contracts for the International Sale of Goods (CIGS)

A set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of business in different nations

Civil Law System

A system of law based on a very detailed set of written laws and codes

Theocratic Law System

A system of law based on religious teachings

Common Law

A system of law based on tradition, precedent, and custom; when law courts interpret common law, they do so with regard to these characteristics

Culture

A system of values and norms that are shared among a group of people and that when taken together constitute a design for living

A system that consolidates power in a single agent who then controls the​ political, economic, and social activities is known as a totalitarian system

A totalitarian system consolidates power in a single agent who then controls the​ political, economic, and social activities. A totalitarian system subordinates the individual to the interests of the collective.

Communist Totalitarianism

A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship

A government of the​ people, by the​ people, and for the people is known as a​ democratic system.

Abraham Lincoln held that democracy is a government​ "of the​ people, by the​ people, for the​ people." Modern-day democracies translate this ideology into the principles that all citizens are politically​ equal, entitled to freedom of​ thought, opinion,​ belief, speech, and​ association, and command sovereign power over public officials.

Values

Abstract ideas about what a society believes to be good, right, and desirable

According to the​ hierarchy-of-needs theory of​ motivation, people try to fulfill physiological needs first

According to the​ hierarchy-of-needs theory of​ motivation, people try to fulfill​ lower-level physiological needs before​ higher-level needs. The most basic needs are​ physiological: food,​ water, and security.

According to the​ hierarchy-of-needs theory of​ motivation, people try to fulfill physiological needs

According to the​ hierarchy-of-needs theory of​ motivation, people try to fulfill​ lower-level physiological needs before​ higher-level needs. The most basic needs are​ physiological: food,​ water, and sex.

international business

All the commercial transactions that take place between two or more countries

World-wide sourcing

All types of businesses are getting inputs from several global locations

The United States has been ranked first on the technological​ scale, but low on the economic scale of globalization. This is an example of how globalization can differ by dimention

Although a country may rank as highly globalized on one​ dimension, it may be low on another.

Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

An OCED convention that establishes legally binding standards to criminalize bribery of foreign public officials in IB transactions and provides for a host of related measures that make this effective

Group

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

Market Economy

An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced

Command Economy

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

Individualism

An emphasis on the importance of guaranteeing individual freedom and self-expression

When the contact among countries brings change that results in the mixing of cultural​ elements, it is known as Creolization

An example of creolization occurs when two languages merge to form a "creole" language. When the change results in mixing cultural​ elements, we have creolization.

World Intellectual Property Organization

An international organization whose members sign treaties to agree to protect intellectual property

International Business

Any firm that engages in international trade or investment

A laissez-faire

A​ laissez-faire approach holds that the government should not interfere in business​ affairs; rather, the market should operate according to the neoliberal principles of free market fundamentalism. A​ laissez-faire system is an individualistic system.

The global movement in the second half of the 20th century that resulted in the number of countries led by democratic governments growing from 22 to 120 is called the Third Wave of Democratization

Between 1950 and​ 2014, the number of electoral democracies grew from 22 to 120 countries during the​ so-called Third Wave of​ Democratization, a global movement that expanded individual freedoms and civil liberties.

Kinesics is the way people​ walk, touch, and move their bodies.

Body​ language, or​ kinesics, is the way people​ walk, touch, and move their bodies. Kinesics differs among​ cultures, and very few gestures have universal meanings.

A company that starts out with a global focus because of its founders international experience is called A born-global company

Born-global companies start out with a global focus because of their​ founders' international experience and because advances in communications give them a good idea of the location for global markets and supplies.

Property Rights

Bundle of 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

Data indicate that democratic reversals have occurred in many countries is a true statement about the current state of democracy

By​ 2012, data signaled​ democracy's retreat worldwide. By​ 2015, retreat gave way to reversals in many countries​ and, as Freedom House​ warned, the​ "return of the iron​ fist."

Confucian Dynamism

Captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors

Risks that include political developments that adversely affect the operations of every company in a country are known as catastrophic risks

Catastrophic political risks are risks that include political developments that adversely affect the operations of every company in a country. It typically arises from macro flashpoints—ethnic ​discord, illegal regime​ change, civil​ disorder, and insurrection—that disrupt society.​ Anti-state activities in Egypt in early​ 2011, for​ example, paralyzed its economy.

The process of imposing elements from a dominant alien culture over time into a local culture is called cultural imperialism

Change by imposition—sometimes called cultural imperialism—involves imposing certain elements from an alien​ culture, such as a forced change in laws by a dominant country​ that, over​ time, becomes part of the subject culture.

You are a manager for an American company that is opening factories in rural areas in a foreign country. Because the factory workers are able to obtain a substantial​ income, some local farmers decide to stop working on their farms and start working at the factories. This is an example of change by choice

Change by choice might occur as a reaction to social and economic situations that present people with new alternatives.

Though cultural value systems are set early in​ life, they might change or evolve through two​ methods which is choice or imposition

Change by choice might occur as a reaction to social and economic situations that present people with new alternatives. Change by imposition—sometimes called cultural imperialism—involves imposing certain elements from an alien​ culture, such as a forced change in laws by an occupying country​ that, over​ time, becomes part of the subject culture.

G20

Comprises the finance ministers and central bank governors of the 19 largest economies in the world, plus representatives from the EU and European Central Bank

political stability is NOT one of the contributing factors in the recent resurgence of totalitarianism rather than democracy in some​ countries

Countries, skeptical of the virtues of a multiparty​ democracy, have translated authoritarian ideologies into​ single-party political systems. For many​ poverty-stricken, politically unstable​ countries, patience with the​ not-yet-realized dividends of the​ "democracy advantage" thesis has worn thin. Economic insecurity from high​ unemployment, slow​ growth, and rising debt in many Western democracies also erodes the effectiveness of​ democracy, as do conflicting ideas about what democracy should look like and how it should function.

Critics charge that globalization does homogenizes to​ products, companies, work​ methods, social​ structures, and even​ language

Critics charge that globalization homogenizes​ merchandise, production​ methods, social​ structures, and even​ language, thus undermining the cultural foundation of sovereignty.

Critics claim that all EXCEPT business growth are problematic results of globalization.

Critics claim that globalization threatens national​ sovereignty, puts stress on the​ environment, and creates income inequality and personal stress.

The frustration that results from having to absorb a multitude of new cultural cues and expectations is known as culture shock

Culture shock typically occurs when a person starts living in a foreign culture for the first time and encounters many kinds of new​ values, customs,​ norms, and expectations.

Culture is BEST describes learned norms based on​ values, attitudes, and beliefs of a group of​ people

Culture—learned norms based on the​values, attitudes, and beliefs of a group of people—is an integral part of a​nation's operating environment.

Two factors that underlie trend towards greater globalization

Declining barriers to international trade and technological chanve

All EXCEPT institutional factors Demography should be examined by a company before it implements international​ strategies

Demography is one of the physical factors​ (not institutional​ factors) that smart companies must examine before implementing international strategies. Demography includes a​ country's population​ density, education, age​ distribution, and life​ expectancy, which all impact IB operations such as market demand and workforce availability.

developmental psychologists believe basic value systems are​ acquired as a child

Developmental psychologists believe that most people acquire their basic value systems as​ children, including such concepts as evil versus​ good, dirty versus​ clean, ugly versus​ beautiful, unnatural versus​ natural, abnormal versus​ normal, paradoxical versus​ logical, and irrational versus rational. These values are not easily changed later on. Next Question

When doing business in the United​ States, you would be expected someone to arrive A few minutes before the actual start time of the business meeting

Different perceptions of time and punctuality also might create confusion. U.S. businesspeople usually arrive early for business​ appointments, a few minutes late for dinner at​ someone's home, and a bit later still for large social gatherings. In another​ country, the concept of punctuality in any or all of these situations might be different.

Foreign Direct Investment (FDI)

Direct investment in business operations in a foreign country

​Home- and​ host-country regulations on​ taxation, employment, and​ foreign-exchange transactions are known as domestic law

Domestic law includes both​ home- and​ host-country regulations on​ taxation, employment, and​ foreign-exchange transactions, whereas international law​-in the form of legal agreements between​ countries-determines how earnings are taxed by all jurisdictions.

When an organization or individual believes that its culture and practices are superior to that of other​ countries, it is known as ethnocentrism

Ethnocentrism reflects the conviction that​ one's own practices are superior to those of other countries. In​ IB, the term is usually applied to a company​ (or individual) so strongly committed to the principle of​ "What works at home will work​ abroad" that its foreign practices ignore differences in cultures and markets.

The ranking of some people within a culture more highly than others within that culture is known as Social stratification

Every culture ranks people. Social stratification creates hierarchies and influences a​ person's class,​ status, and financial rewards within that culture. In​ business, this practice might entail ranking members of managerial groups more highly than production group members. Social stratification is determined by​ (1) individuals' achievements and talents and​ (2) their group memberships.

Country-by-country analysis can be a difficulty for managers for all of these reasons EXCEPT subcultures never exist within a nation

Every​ nation, or even group of individuals such as a​ workforce, has several cultures and cultures within the larger​ culture, making a broad analysis difficult and ineffective. A​ subculture, whether based on ethnic​ group, age,​ education, or other factors can exist within one​ country, making a​ country-by-country analysis difficult for managers.

Translating from the native language to the foreign​ language, then having a second person translate from the foreign language back to the native language is an example of using back translation when translating business​ documents

For written​ work, do back​ translations: Have one person go​ from, say, English to French and a second from French back to English. If your final message says what you said​ originally, it's probably satisfactory.

Totalitarianism

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

Franchising

Franchising is a mode of business in which one party allows another to use its trademark as an essential asset of the franchisees business

A mode of business in which one party allows another to use its trademark as an essential asset is known as​ franchising

Franchising is a mode of business in which one party allows another to use its trademark as an essential asset of the​ franchisee's business.

Generally, people do not find their economic status to be satisfactory unless they are doing better and​ keeping up with others

Generally, people do not find their economic status to be satisfactory unless they are doing better and are keeping up with others. In terms of economic​ well-being, we look not only at our absolute situations but also compare ourselves to others.

Geocentrism requires companies to balance informed knowledge of their organizational cultures with​ home- and​ host-country needs,​ capabilities, and​ constraints

Geocentrism requires companies to balance informed knowledge of their own organizational cultures with​ home- and​ host-country needs,​ capabilities, and constraints. Because it encourages innovation and improves the likelihood of​ success, geocentrism is the preferred approach for companies to succeed in foreign cultures and markets.

You live in Jamaica and rarely see your country compete in many winter Olympic sports. This is an example of international business being affected by geography

Geography can affect where different goods and services can be produced.​ Jamaica's geography is not conducive to winter​ sports, hence the dearth of Winter Olympians from that country.

Effective supply chain management

Globalization enables consumers to have more product​ variety, better quality​ products, and lower prices due to increased competition.​ However, globalization does not necessarily improve supply chain management.

Products that are shipped from China when only 4 percent of the​ product's parts were made in China are examples of globalization

Globalization refers to the widening set of interdependent relationships among people in different parts of the world who happen to be divided by nations.

Patent

Grants the governor of a new product or process exclusive rights to the manufacture, use, or sale of that invention

Society

Group of people who share a common set of values and norms

Social strata

Hierarchical social categories based on family background, occupation, and income

High Individualism

High individualism describes an​ employee's preference to fulfill leisure time and improve skills outside the​ organization, receive direct monetary compensation as opposed to fringe​ benefits, and engage in personal decision making and​ on-the-job challenges.

Collectivism indicates an​ employee's penchant for dependence on the organization instead of the​ employee's preference for leisure time and outside​ activities

High​ collectivism, in​ contrast, typifies an​ employee's penchant for dependence on the organization thorough​ training, satisfactory workplace​ conditions, and good benefits. In countries with high​ individualism, a​ self-actualization opportunity is a prime motivator because employees want challenges. In those with high​ collectivism, fulfilling security needs is a prime motivator.

A government that protects the liberties of individuals demonstrates​ individualism

Individualism refers to the primacy of the rights and roles of the individual. The doctrine of individualism emphasizes the primacy of individual​ freedom, self-expression, and personal independence​ (think of the declaration that we all have​ "certain inalienable​ Rights, that among these are​ Life, Liberty and the pursuit of​ Happiness").

individual regime

Individualism refers to the primacy of the rights and roles of the individual. The doctrine of individualism emphasizes the primacy of individual​ freedom, self-expression, and personal independence​ (think of the declaration that we all have​ "certain inalienable​ Rights, that among these are​ Life, Liberty and the pursuit of​ Happiness").

External stakeholders

Individuals or groups that have some claim on a firm such as customers, suppliers, and unions

Institutional factors that that may affect a​ company's international operations include Politics, law,​ culture, and economy

Institutional factors such as​ politics, law,​ culture, and economy may affect a​ company's international operations.

Paris Convention for the Protection of Intellectual Property

International agreement to protect intellectual property

International business transactions refer to all EXCEPT to personal conversations

International business is defined as all the commercial transactions​ (including sales,​ investments, and​ transportation) that take place among countries.

International Monetary Fund

International institution set up to maintain order in the international monetary system

United Nations

International organization made up of 193 countries to promote peace, security, and cooperation

General Agreement on Tariffs and Trade (GATT)

International treaty that committed signatures to lowering barriers to the free flow of goods across national borders and led to the WTO

Product Liability

Involves holding a firm and its officers responsible when a product causes injury, death, or damage

jargon is NOT considered a silent language

Jargon, often referred to as​ "buzzwords," are often industry or culturally specific words that are not easily understood outside of the group of people using them Jargon is not considered a silent language.

Signed contracts that permit one company to allow another to use its assets are known as licensing agreements

Licensing agreements are signed contracts that permit one company to allow another to use its​ assets-such as​ trademarks, patents,​ copyrights, or expertise.

Many Americans are surprised to learn that​ 15% of the value of U.S consumption comes from other countries.

Many Americans are surprised to learn that only about 15 percent of the value of U.S. consumption comes from other countries. This suggests globalization is less pervasive than you might think.

Tangible products that are sent out of a country are known as merchandise export

Merchandise exports are tangible products that are sent out of a country.

Tangible products that are sent out of a country are known as merchandise exports

Merchandise exports are tangible products that are sent out of a country.

Goods that are brought into a country are known as merchandise imports

Merchandise imports are goods that are brought into a country.

Globalization of markets

Merging of historically distinct and separate national markets into one huge global market;

Globalization

Movement from thinking about markets in terms of geographic areas to thinking about them as something that transcends borders; the shift towards a more integrated and interdependent world economy

One of the most important aspects of any particular market that managers must monitor and study in order to assess risk is the​ politics and laws in that market.

Navigating markets requires studying how political and legal circumstances overlap and differ. Managers​ evaluate, monitor, and forecast the dimensions and dynamics of foreign political environments.

The three objectives of expanding​ sales, acquiring​ resources, and reducing risk help guide all of the following decisions​ EXCEPT how many partners should be involved in international business.

Normally, the three objectives guide all of​ one's decisions about​ whether, where, and how to engage in international business.

Mores

Norms seen as central to the functioning of social life

International Trade

Occurs when a firm exports goods or services to consumers in another country

prestige relates to a​ person's status in an organizational​ setting

One factor in silent language relates to a​ person's status, particularly in an organizational setting. A U.S. manager who places great faith in physical things as cues to prestige might underestimate the status of foreign counterparts who​ don't have​ large, plush corner offices on high floors.

Political risk refers to risk in all EXCEPT Political party affiliation

Political risk is a potential loss arising from a change in government policy or events in a country. Although each political party has a core set of values and​ beliefs, one's political party affiliation does not represent a political risk.

Potential loss arising from political​ decisions, events, or conditions that change a​ country's business environment is known as political risk

Political risk is the risk that political​ decisions, events, or conditions change a​ country's business environment in ways that force investors to accept lower rates of​ return, cost them some or all of the value of their​ investment, or threaten the sustainability of their operation.

one of the major problems that arise from cultural​ collisions is A​ company's employees encounter distress due to adjusting to foreign behaviors.

People experiencing cultural collision often feel confused and uncomfortable.

Internal Stakeholders

People who work for or own the business such as employees, directors, and stockholders

All of the following are factors of increasing globalization​ EXCEPT static political environments

Political changes sometimes open new​ frontiers, such as diplomatic relations between the United States and Cuba.​ Today, because of changing political situations and government​ policies, only a few countries are heavily isolated economically or do business almost entirely within a political bloc.

Democracy

Political system in which government is by the people, exercised either directly or through elected representatives

World Trade Organization

Primarily 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 (97% of world trade countries)

An American clothing company partners with a textile company in China to produce its new fleece jacket at a lower cost. This is an example of​ resource acquisition

Producers and distributors seek out​ products, services,​ resources, and components from foreign​ countries-sometimes because domestic supplies are inadequate.​ They're also looking for anything that will create a competitive​ advantage, such as acquiring any resource that cuts costs.

Intellectual Property

Products of the mind, ideas; can be protected by patents, copyrights, and trademarks

Folkways

Routine conventions of everyday life

Exporting

Sale of products produced in one country to residents of another country

Companies engaging in international business might benefit from all of the following EXCEPT increased sales

Selling in countries with different timing of business cycles can decrease swings in sales and profits​ (e.g., increasing sales stability through operations in countries that enter and recover from recessions at even slightly different​ times).

You are a professional athlete from the United States and are traveling to Rome for a competition. Your travel expenses in Rome can be interpreted as service exports

Service exports can be defined as providers and receivers of payments for services. As a professional athlete traveling in​ Rome, you are receiving services associated with​ travel; these services are service exports.

Product Safety Laws

Set certain safety standards to which a product must adhere

Norms

Social rules and guidelines that prescribe appropriate behavior in particular situations

The social stratum of an individual is determined by all of the following EXCEPT​ An​ individual's character and potential

Social stratification can determine outward things like a​ person's class,​ status, and financial rewards within a​ culture, but not a​ person's character or potential.

The frustration that results after a person has absorbed a new​ culture's cues and expectations and then returns home is known as reverse culture shock

Some people experience reverse culture shock when returning home after becoming partial to certain aspects of life in a different culture.

Socialist

Someone who believes in public ownership of the means of production for the common good of society

Globalization of production

Sourcing of goods and services from locations around the globe to take advantage of national differences in cost and quality factors of production

You own a company in a country that has strict labor laws and want to find a way to cut costs. You decide to produce your product in a foreign country with fewer labor laws. This demonstrates threats to national sovereignty criticisms of​ globalization

Sovereignty is a​ nation's freedom to​ "act locally" and without externally imposed restrictions. Many critics suggest globalization diminishes​ countries' sovereignty.

Strategic concerns focuses on​ long-term issues when opening an international​ operation

Strategic concerns direct their attention to​ long-term issues that shape the​ competitiveness, profitability, and sustainability of the firm.

Political system

System of government in a nation

Legal system

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

Social structure

The basic social organization of a society

Contract Law

The body of law that governs contract enforcement

The creation of legal agreements between countries that determine how earnings will be taxed by all jurisdictions is known as international law

The creation of legal agreements between countries that determine how earnings will be taxed by all jurisdictions is known as international law.

degree of adjustment

The degrees of successful adjustment refer to the extent to which a culture is willing to accept the introduction of something foreign in addition to their view on cultural issues.

Trademarks

The designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products

Copyrights

The exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit

Public action

The extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats

All EXCEPT democratic are types of legal​ systems

The five types of legal systems are common​ law, civil​ law, customary​ law, theocratic​ law, and mixed. A democracy is a type of political​ system, not legal system.

The globalization of markets is directly responsible for progressively standardizing legal​ systems

The globalization of markets progressively standardizes legal systems. Countries intent on attracting foreign investors develop positive​ reputations, transparent​ regulations, and consistent politics.​ Similarly, officials design business regulations that are easily accessible and objectively administered.

Stakeholders

The individuals or groups that have an interest, stake, or claim in the actions and overall performance of a company

Legal system are specifies rules that regulate​ behavior, the process by which laws are​ enforced, and the procedures used to resolve​ grievances

The legal system specifies rules that regulate​ behavior, the process by which laws are​ enforced, and the procedures used to resolve grievances.

To integrate the diverse elements of a society is the goal of a political​ system

The mission of a political system is​ clear-cut: integrate different groups into a​ functioning, self-governing society.

People often treat the idea of a nation and the idea of culture as​ synonymous because there are basic similarities among people within the same national boundaries.

The nation provides a workable definition of culture because similarity among people is both a cause and effect of national boundaries. Within a​ nation's borders, people chiefly share such essential attributes as values and language.​ However, people can belong to multiple cultures based on their​ nationality, ethnicity,​ religion, gender, work​ organization, profession,​ age, and income level.

All of the following EXCEPT​ economic forces comprise the political principles and legal outlooks that define a​ nation's business environment.

The political policies and legal practices that define a​ nation's business environment are comprised of the role of government in​ society, political​ ideologies, political​ risk, the legal​ environment, and operational and strategic legal issues.

Political economy

The political, economic, and legal systems of a country

Moore's Law

The power of microprocessor technology doubles and its costs of production fall in half every 18 months

Intellectual property rights​ (IPR) specifies ownership of creative​ ideas, innovation, or intangible​ insights

The primary safeguard is an intellectual property right​ (IPR) that grants the registered owners of​ inventions, literary and artistic​ works, and​ symbols, names,​ images, or designs the right to determine the use of their property. In other​ words, an IPR grants the registered owner of a copyright the legal authority to decide who might use the property and under what circumstances.

The primary types of political risk include all of the following EXCEPT global

The primary types of political risk are​ systemic, procedural,​ distributive, and catastrophic.

All of the following have led to the rise of democracy since the​ mid-1970s EXCEPT Societal demands for collectivism

The rise of democracy since the​ mid-1970s is due to the failure of totalitarian​ regimes, improvements in​ technology, and economic dividends of political freedom. The shift from collectivism to individualism promoted civil liberties and encouraged political freedom.

The rule of man holds that ultimate authority resides in a person whose word is​ law

The rule of man holds that ultimate authority resides in a person whose word and​ whim, no matter how unfair or​ unjust, is law. For much of​ history, rulers and law were one and the same—the law was the will of the​ ruler, whether that ruler was called​ king, lord,​ empress, shogun,​ czar, raj,​ chief, or caliph.

Rule of man holds that ultimate power resides in a person whose word and whim is​ law

The rule of man holds that ultimate authority resides in a person whose word and​ whim, no matter how unfair or​ unjust, is law. The rule of man is an instrumental device of totalitarianism.

Privitization

The sale of state-owned enterprises to private investors

Private action

The theft, piracy, blackmail and the like by private individuals or groups

Expanding​ sales, acquiring​ resources, and reducing risk make up the three major objectives that underlie the reasons for engaging in international​ business

The three major objectives that underlie the reasons for engaging in international business are expanding​ sales, acquiring​ resources, and reducing risk.

Stock of FDI

The total accumulated value of foreign-owned assets at a given time

Globalization

The widening set of independent relationships among people from different parts of the world that happens to be divided into nations

A type of legal system that is based on religious teachings is known as theocratic law

Theocratic law is a type of legal system. A theocratic law system relies on religious​ doctrine, precepts, and beliefs. Ultimate legal authority is vested in religious​ leaders, who regulate business transactions and social relations based on their interpretation of the sacred text.

Determining a​ culture's specific hierarchy of needs can help a business do Distinguish the reward preferences of employees in foreign countries.

The​ hierarchy-of-needs theory can help a business distinguish the reward preferences of employees in different parts of the world.

Social Democrats

Those committed to achieving socialism by democratic means

Communists

Those who believe socialism can be achieved only through revolution and totalitarian dictatorship

Foreign Corrupt Practices Act

US law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical action

Cross-cultural literacy

Understanding how the culture of a country affects the way business is practiced

MNEs stipulate the choice of law clauses in international contracts to protect themselves during conflict​ resolution

Usually, in the face of a​ cross-national dispute, each company petitions its​ home-country court to claim jurisdiction in the belief that it will likely receive more favorable treatment. This situation is especially pressing when a MNE from a​ rule-of-law system has legal difficulties in a​ rule-of-man environment. Worry about legal proceedings in certain legal systems leads MNEs to specify a​ choice-of-law clause in contracts that stipulates whose​ laws, if​ necessary, govern dispute resolution.​ Importantly, it obliges both parties to negotiate a compromise in the event the law changes.

Mercantilism

an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports (trade surplus)

Conflict between divergent cultures that come in contact with one another is referred to as cultural collision

When contact among divergent cultures creates​ problems, the situation is known as cultural collision.

Measuring globalization is problematic because domestic business transactions can become international ones when national boundaries shift

When national boundaries​ shift, such as in the breakup of​ Ukraine, domestic business transactions can become international ones and vice versa.

Business managers face all EXEPT choosing a business worldwide operational concerns

Worldwide operational concerns for managers include starting a​ business, entering​ contracts, hiring and firing​ workers, and closing the business. Although the business model might change​ slightly, the MNE already has a business before they opt to open overseas.

Rights Theories

a 20th century theory that human beings have fundamental rights and privileges that transcend national boundaries and cultures

Universal Declaration of Human Rights

a UN document that lays down the basic principles of human rights that should be adhered to

Absolute Advantage

a country has an absolute advantage in the production of a product when it is more efficient than any other country at producing it

Factor Endowments

a country's endowment with resources such as land, labor, and capital

Ethical Strategy

a course of action that does not violate a company's business ethics

Just Distribution

a distribution of goods and services that is considered fair and equitable

Turnkey Project

a project in which a firm agrees to set up an operating plant for a foreign client and hand over the "key" when the plant is fully operational

Zero-Sum Game

a situation in which an economic gain by one country results in an economic loss by another

Ethical Dilemma

a situation in which there is no ethically acceptable solution

Franchising

a specialized form of licensing in which the franchiser not only sells intangible property (usually trademark) to franchisee, but also insists that the franchisee agree to abide by strict rules on how it does business

Caste System

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

Class System

a system of social stratification in which social status is determined by the family into which a person is born and subsequent socioeconomic achievements; mobility between classes is achievable

Business Ethics

accepted principles of right or wrong governing the conduct of businesspeople

First-Mover Advantages

advantages accruing to the first to enter a market

Agglomeration

agglomeration describe the process of many new companies moving into areas with numerous compatitiors and suppliers.

Licensing

an arrangement in which a licensor grants the rights to intangible property to the licensee for a specified period and receives a royalty fee in return

A​ nation's freedom to​ "act locally" and without externally imposed restrictions is known

as sovereignty.

Kantian Ethics

based on the belief that people should be treated as ends and never purely as means to the ends of others

Cultural Relativism

belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate

Pioneering Costs

costs than an early entrant has to bear that a later entrant can avoid

First-Mover Disadvantages

disadvantages associated with entering a foreign market before other IB's

Globalization leads to all except

effective supply chain management

Timing of Entry

entry is early when a firm enters a foreign market before other foreign firms and late when a firm enters after other IB's have established themselves

Joint Venture

establishing a firm that is jointly owned by two or more otherwise independent firms

Individualism vs. Collectivism

focuses on the relationship between the individual and his/her fellows

Power Distance

how a society deals with the fact that people are unequal in physical and intellectual capabilities. Cultures that are high on this let inequalities grow over time, cultures that are low on this try to play inequalities down

Current Account

in the balance of payments, records transactions involving the export or import of goods and services

Factors of production

inputs into the productive processes of a firm, including labor management, land, capital, and technological know how

Uncertainty Avoidance

measures the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty

Balance of Payments Accounts

national accounts that track both payments to and receipts from foreigners

Current Account Surplus

occurs when a country exports more goods, services, and income than it imports

Current Account Deficit

occurs when a country imports more goods, services, and income than it exports

Capital Account

records one-time changes in the stock of assets

Financial Account

records transactions that involve the purchase or sale of assets

Masculinity vs. Femininity

relationship between gender roles and work

Ethical Systems

set of moral principles, or values, that are used to guide and shape behavior

In the United​ States, 97 percent of exporters​ are

small firms

Wholly Owned Subsidiary

subsidiary in which the firm owns 100% of the stock

Religion

system of shared beliefs and rituals that are concerned with the realm of the cared

Free Trade

the absence of barriers to the free flow of goods and services between countries

Righteous Moralism

the belief that a multinational's home country standards of ethics are the appropriate ones for companies to follow in foreign countries

Naive Immoralism

the belief that if a manager of a multinational sees that firm from other nations are not following ethical norms in a host nation, the manager should not either

Most of the​ world's goods and services are still sold in

the countries where​ they're produced.

Social Mobility

the extend to which individuals can move out of the social strata into which they are born

Social Responsiblity

the idea that businesspeople should consider social consequences of economic actions when making business decisions

New Trade Theory

the observed pattern of trade in the world economy may be due in part to the ability of firms in a given market to capture first-mover advantages

Class Consciousness

the tendency for individuals to perceive themselves in terms of their class background

Constant Returns to Specialization

the units of resources required to produce a good are assumed to remain constant no matter where one is a on a country's production possibility frontier

Organization Culture

the values and norms shared among an organization's employees

Utilitarian Approaches to Ethics

these hold that the moral worth of actions or practices is determined by their consequences

Two major forces in the global economy

trade and investment

Economies of Scale

unit cost reductions associated with a large scale output