Global Business Planning - Globalization, Deglobalization, and Competitiveness

Vocabulary flashcards based on Chapter 1 lecture notes, covering core concepts of globalization, firm-level advantages, global value chains, reshoring, CSR frameworks, and international indices.

Global Level Globalization

Convergence in economic dimensions and variables across many countries, such as consumer preferences, standardized products, market openness, and economic policies, resulting in interdependence and integration.

Country Level Globalization

The intensity of a country's economic interactions with the rest of the world, measured by exports and imports as a percentage of GDP, along with inward and outward Foreign Direct Investment (FDI) flows.

Sector Level Globalization

A condition in which industries across world markets are dominated by the same group of firms competing globally, requiring companies to operate in all major markets and coordinate activities centrally.

Firm Level Globalization

The extent to which an individual business enterprise has expanded its sales and assets into foreign countries and generates international flows of products, capital, and knowledge.

Degree of Globalization Index

A firm-level metric calculated as $\frac{\frac{\text{Foreign Sales}}{\text{Total Sales}} + \frac{\text{Foreign Assets}}{\text{Total Assets}} + \frac{\text{Foreign Employees}}{\text{Total Employees}}}{3}$.

Global Industries

Industries characterized by standardized products, similar consumer needs across markets, global pricing, global competitors, rapid innovation, and a strong need for economies of scale.

Local Industries

Industries defined by differing consumer needs across countries, adapted products or services, complex distribution networks, local customers, high transportation costs, and limited economies of scale.

Transnational Index (TNI)

A composite structural indicator calculated as the average of a corporation's foreign-to-total ratios for assets, sales, and employment.

Global Advantage

A strategic advantage derived from the international deployment of resources, assets, and capabilities, combining cross-country activities to achieve cost, differentiation, and innovation efficiencies.

Multinational Advantage

A strategic advantage gained through cross-national market coverage, which provides access to market and resource opportunities while diversifying country risk.

Metanational Advantage

A strategic advantage realized by sourcing knowledge across multiple locations, accessing dispersed global capabilities, and integrating them with local market knowledge.

Emerging-Market Multinationals (EMs)

Multinational firms originating from emerging economies that exhibit accelerated internationalization, external growth via acquisitions and alliances, adaptive imitation, strong political capabilities, and organizational flexibility.

Reshoring

The strategic managerial process of relocating previously offshored value-chain activities, production processes, or sourcing back to the home country or home region.

Global Services Location Index (GSLI)

An analytical framework by A.T. Kearney ranking offshore location attractiveness based on Financial Attractiveness ($35\%$), People Skills and Availability ($25\%$), Business Environment ($25\%$), and Digital Resonance ($15\%$).

Process Sustainability

The optimization of production and distribution chains to minimize environmental impact through reductions in energy, water usage, and waste, alongside responsible social and labor practices.

Product Sustainability

The transformation of product design and sourcing to utilize sustainable materials that meet environmental criteria without sacrificing functionality, quality, or economic viability.

Carroll's CSR Pyramid

A framework structuring corporate social responsibility into four distinct levels: Economic ('be profitable', required), Legal ('obey the law', required), Ethical ('be ethical', expected), and Philanthropic ('be a good corporate citizen', desired).

UN Global Compact

A voluntary United Nations initiative designed to promote responsible corporate citizenship by aligning business operations with ten universally accepted principles spanning human rights, labor standards, environment, and anti-corruption.

Corruption

The misuse or abuse of entrusted power for private gain, as defined by Transparency International.

Corruption Perceptions Index (CPI)

An indicator published by Transparency International that ranks countries based on their perceived level of public-sector corruption.

Inward Foreign Direct Investment (Inward FDI)

Capital and resource flows into a host country when overseas entities establish business operations, build facilities, or acquire controlling equity in domestic enterprises.

Outward Foreign Direct Investment (Outward FDI)

Capital and resource flows originating from domestic enterprises to acquire foreign assets, establish subsidiaries, or gain controlling stakes in overseas markets.