global business exam 1

main measure of economic health

gross domestic product

Gross National Income

broadest measure of economy with no adjustment for cost of living/inflation

Gross National Product

measures all economic activity of domestic and abroad producers

main components of gross domestic product

consumption, government spending, investment and net exports

gross domestic product

all economic activity in borders of region regardless of nationality

parity purchasing power

best measure for comparing income levels of citizens in different countries (adjusts for actual value of currency)

human development index

developed by Amartya Sen to estimate potential economic growth based on life expectancy at birth, educational attainment, sufficiency income for basic needs

gini coefficient

measure of dispersion of wealth, income and consumption inequality

privatization

former state held property is sold to private owners

deregulation

reduce government intervention for businesses

measures of how attractive a country is for investment

benefits, costs and risks

5 determinants of culture

religion, social structure, langauge, education, economic philosophy, political philosophy

engines of economy growth

GDP and favorable interest rates for investment

innovation and entrepreneurship need

property rights and a thriving economy

murDARAba

profit sharing where bank lender takes proceeds from business rather than lending

muraBAHa

most common islamic banking contract that makes a purchase and resells to borrower/buyer for profit

how many languages in the world

over 7,000

most widely spoken language by native speakers

mandrin

examples of unspoken language

posture, gestures, personal space, facial expressions, body language

culture

system of ideas that constitute a design for living

ethnocentric

only individuals from home market are placed in positions of management/leadership in host country

polycentric

individuals from host country are placed in managerial positions

geocentric

best individual regardless of residence is placed in managerial position

what trait is needed for expatriate selection process?

perceptual ability can practice empathy

why do expatriates fail their international assignments

inability of spouse to adjust, emotional immaturity, can’t cope with larger responsibilities

0 gini coefficient

perfect equality

1 gini coefficient

perfect inequality