#4 Nations Flashcards
PDP
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GDP
Value of all goods and services produced by a domestic economy over a one-year period
HDI
Measure of the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living
Newly Industrialized Countries (NIC)
Country that has recently increased the portion of its national production and exports derived from industrial operations
Developed Countries
Country that is highly industrialized and highly efficient, and whose people enjoy a high quality of life
Emerging markets
Newly industrialized countries plus those with the potential to become newly industrialized
Developing Countries
Nation that has a poor infrastructure and extremely low personal incomes. Also called less-developed countries.
Economic transition
Process by which a nation changes its fundamental economic organization and creates new free-market institutions
Confiscation
Forced transfer of assets from a company to the government without compensation
Expropriation
Forced transfer of assets from a company to the government with compensation
Nationalization
Government takeover of an entire industry
Local content requirements
Laws stipulating that a specified amount of a good or service be supplied by producers in the domestic market
Political risk
Likelihood that a society will undergo political change that negatively affects local business activity
Briefly explain the three methods companies use to manage political risk:
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