INTB Ch. 3

People in the West tend to associate a representative democracy with

a market economic system.

First mover advantages

advantages acquiring to the first to enter the market

Gross National Income (GNI)

measures the total annual income received by residents of a nation

GNI figures are helpful in understanding an economy because they

tell us how poor a country is relative to another.

The base for the adjustment of purchasing power parity is the cost of living in

the United States.

Deregulation

Removal of government restrictions concerning the conduct of a business.

A country that has ________ is an unattractive choice for international business.

a closed totalitarian dictatorship

Innovation

development of new products, processes, organizations, management practices, and strategies

Purchasing Power Parity (PPP)

An adjustment in gross domestic product per capita to reflect differences in the cost of living

Human Development Index

An attempt by the United Nations to assess the impact of a number of factors on the quality of human life in a country

__________ measures the total annual income received by residents of a nation.

Gross national income

Political Risk

The likelihood that political forces will cause drastic changes in a country's business environment that will adversely affect the profit and other goals of a particular business enterprise.

What is an accurate description of how the political economy of many of the world's nation-states has changed radically since the late 1980s?

There has been a move away from centrally planned and mixed economies and toward a more free market economic model.

A country that abolishes laws that regulate private enterprises and removes price controls is in the process of

deregulation.

Late-Mover Disadvantages

handicaps experienced by being a late entrant in a market

The development of new products, processes, organizations, management practices, and strategies is called

innovation.

U.S.-based Centra Corporation is hesitant about entering into a licensing agreement with Fission, Inc., a company from another nation, due to the likelihood that Fission will break a contract or expropriate property rights. What specific type of risk is Centra Corporation trying to avoid?

legal

ABC Company is hesitant about entering Ukraine, because the country has been experiencing social unrest in recent years. Based on this information, what type of risk is ABC Company trying to avoid?

political

In 2017, the Brazilian government transferred the state ownership of the electric company, the airports, highways, and ports to private investors to stimulate the economy. This is an example of

privatization.

The spread of democracy among countries is most likely to lead to

the promotion of greater competition.

Entrepreneurs

those who first commercialize innovations