Untitled Deck Flashcards
(29 cards)
What is International Business?
International Business is defined as a business that engages in international economic activities and the action of doing business abroad.
How is Global Business defined in this book?
Global business is defined as business around the globe, including competitive battles in emerging economies.
What is the Base of the Pyramid?
The Base of the Pyramid refers to the vast majority of humanity, about four billion people, living on less than $2,000 a year.
What does BRIC stand for?
BRIC stands for Brazil, Russia, India, and China.
What are Emerging Economies?
Emerging economies are countries that are starting to emerge as new players in the world economy.
What is Foreign Direct Investment (FDI)?
FDI is direct investment in, control, and management of value-added activities in other countries.
What is Gross Domestic Product (GDP)?
GDP is a nation’s total output of goods and services.
What is Gross National Product (GNP)?
GNP is GDP plus income from nonresident sources abroad.
What is Gross National Income?
Gross National Income is GDP plus income from nonresident sources abroad.
What is International Business (IB)?
IB is defined as a business firm that engages in international economic activities and/or the action of doing business abroad.
What is a Multinational Enterprise (MNE)?
An MNE is a firm that engages in foreign direct investment by directly investing in, controlling, and managing value-added activities in other countries.
What is Purchasing Power Parity (PPP)?
PPP is an adjustment to reflect the differences in cost of living in various countries.
What is Reverse Innovation?
Reverse innovation is an innovation that is adopted first in emerging economies and then diffused around the world.
What does Triad refer to?
Triad refers to the developed economies in North America, Western Europe, and Japan.
Why study Global Business?
To better compete in the corporate world requiring global expertise and to enhance understanding of the global economy.
What is an Expatriate Manager?
An expatriate manager (expat) is a manager who works abroad.
What is the Group of 20 (G-20)?
The G-20 is the group of 19 major countries plus the European Union whose leaders meet biannually to solve global economic problems.
What is an International Premium?
Managers who work abroad often command a significant pay raise when working overseas.
What are the two core perspectives in the unified framework?
The two core perspectives are the institution-based view and the resource-based view.
What does the institution-based view suggest?
It suggests that success and failure are enabled and constrained by institutions.
What are Institutions?
Institutions are the structures that define the rules of the game.
What is the Institutional Framework?
The institutional framework consists of the formal and informal institutions that govern individual and firm behavior in a country.
What is the Liability of Foreignness?
It is the inherent disadvantage that foreign firms experience in host countries due to their nonnative status.
How is Globalization viewed?
Globalization can be viewed as a recent phenomenon, a long-run historical evolution, and a pendulum that swings from one extreme to another.
