Chapter 1 Flashcards
(31 cards)
International business (IB)
(1) A business (firm) that engages in international (cross border) economic activities and/or (2) the action of doing business abroad
Multinational Enterprise (MNE)
A firm that engages in foreign direct investment (FDI)
Foreign direct investment (FDI)
Investment in, controlling, and managing value-added activities in other countries
Global business
Business around the globe
Group of 20 (G-20)
The group of 19 major countries plus the European Union whose leaders meet on a biannual basis to solve global economic problems
Global mindset
Ability to “connect the dots” globally
Expatriate manager (expat)
A manager who works abroad
International Premium
A significant pay raise when working overseas
Triple bottom line
Economic, social, and environmental performance
Stakeholder
Any group or individual who can affect or is affected by the achievement of a firm’s objectives
Liability of foreignness
The inherent disadvantage that foreign firms experience in host countries because of their nonnative status
Globalization
The close integration of countries and people of the world
Emerging economies
A term that has gradually replaced the term “developing countries” since the 1990s
Emerging markets
A term that is often used interchangeably with “emerging economies”
Base of the pyramid (BoP)
Economies where people make less than $2,000 per capita per year
BRIC
Brazil, Russia, India, and China
BRICS
Brazil, Russia, India, China, and South Africa
Reverse innovation (or frugal innovation)
An innovation that is adopted first in emerging economies and is then diffused around the world
Risk Management
The identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events
Black swan event
An unpredictable event that is beyond what is normally expected and that has severe consequences
Scenario planning
A technique to prepare and plan for multiple scenarios (either high risk or low risk)
Semiglobalization
A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely
Gross domestic product (GDP)
The sum of value added by resident firms, households, and governments operating in an economy
Purchasing power parity (PPP)
A conversion that determines the equivalent amount of goods and services that different currencies can purchase
