Global Business, CSR, and International Trade Policy

Vocabulary flashcards covering corporate social responsibility, international trade policies, the global digital divide, semiconductor supply chains, pharmaceutical regulation, and macroeconomic classifications.

Project Shakti

A corporate social responsibility initiative by Unilever in India that trains rural women as micro-entrepreneurs ("Shakti Ammas") in distribution networks.

Shakti Ammas

A network of over $120{,}000$ rural female micro-entrepreneurs in India who earn an average monthly income of $10$ to $14$ dollars, effectively doubling household income in regions with per capita GDP around $700$ dollars.

Sustainable Agriculture Programme (Unilever Indonesia)

A Unilever initiative focused on partnering with palm oil farmers and NGOs to ensure responsible sourcing and promote biodiversity.

Waste-Free World Initiative (Unilever Brazil)

A Unilever environmental initiative focused on recycling and upcycling packaging materials to reduce environmental footprints and carbon emissions.

Water Stewardship Programme (Unilever Kenya)

A CSR initiative addressing water scarcity in Kenya through reforestation, water conservation, and eco-friendly packaging.

Sustainable Living Plan Strategic Thesis

Unilever's core strategic premise asserting that corporate growth and societal well-being are mutually reinforcing rather than mutually exclusive.

Digital Divide

The structural disparity between populations with access to digital technology and internet infrastructure and those without.

Digital Illiteracy Barrier

A secondary digital barrier where individuals with physical internet access still struggle to navigate online platforms, use email, or access government services.

Internet para Todos

A program by Telefónica in Peru designed to extend internet access and affordable digital literacy training to disconnected remote communities.

Digital Garage

A Google program providing learners with practical digital skills, including coding, online marketing, and cybersecurity.

goIT Program

A Tata Consultancy Services (TCS) initiative that introduces underserved students to STEM fields to foster innovation and pathways into technology careers.

TECH4ALL

A Huawei initiative that deploys technology for environmental conservation while simultaneously building digital literacy in connected communities.

Triple Bottom Line

A CSR framework evaluating corporate success across three distinct performance dimensions: People (social impact), Planet (environmental impact), and Profit (financial sustainability).

"Livable" Zone of Balance

The intersection of social and environmental dimensions in CSR models, ensuring community development does not destroy local ecosystems.

"Viable" Zone of Balance

The intersection of environmental protection and economic profit within CSR framework models.

"Equitable" Zone of Balance

The intersection of economic profit and social impact in CSR models, where financial gains are reinvested to benefit society broadly.

Singtel CSR Localization

Singtel's alignment with Singapore's regulatory and cultural environment by prioritizing digital inclusion for disadvantaged groups and e-waste management.

EDP CSR Alignment

Portuguese energy firm EDP's alignment with national priorities through investments in renewable wind and solar energy, coupled with affordable power options for low-income households.

Developing Nations' Growth Priority

The policy posture of emerging nations like India and China that prioritize rapid economic growth over strict environmental mandates to fulfill the urgent national priority of lifting hundreds of millions out of poverty.

Taiwan Semiconductor Manufacturing Company (TSMC)

Taiwan's leading producer of advanced microchips and the primary exporter to the United States, accounting for approximately $20.1\text{ billion}$ dollars in U.S. semiconductor imports.

South Korean Semiconductor Specialization

The production and global export of advanced memory chips used in personal computers, smartphones, and data centers, led by Samsung and SK Hynix.

Chinese Semiconductor Specialization

The manufacturing and supply of standard and lower-end semiconductors for consumer electronics and industrial machinery, valued at approximately $10.7\text{ billion}$ dollars.

East Asian Microchip Concentration Risk

A global supply vulnerability where regional factory shutdowns, lockdowns, and shipping bottlenecks generated severe worldwide shortages across the automotive, tech, and medical industries.

CHIPS and Science Act of 2022

U.S. legislation enacted in August 2022 providing approximately $52\text{ billion}$ dollars in subsidies and incentives to revitalize domestic semiconductor manufacturing, enhance competitiveness, and safeguard national security.

Direct Manufacturing Subsidies (CHIPS Act)

A $39\text{ billion}$ dollar allocation within the U.S. CHIPS Act dedicated specifically to subsidizing the domestic construction of microchip fabrication plants.

Semiconductor R&D Allocation (CHIPS Act)

A $13\text{ billion}$ dollar fund authorized under the CHIPS and Science Act targeted explicitly toward microchip research and development.

Advanced Manufacturing Investment Tax Credit

A $25\%$ investment tax credit granted under the U.S. CHIPS Act to companies expanding domestic semiconductor fabrication facilities.

U.S. Healthcare Paradox

The contradiction whereby the United States has the highest per capita healthcare and pharmaceutical expenditures globally, but ranks only $48\text{th}$ in global life expectancy.

Prescription Drug Marketing Act of 1987

A federal law restricting the importation of prescription medications into the United States strictly to the original pharmaceutical manufacturers.

U.S.-Canada Drug Price Gap

A pharmaceutical pricing disparity caused by the Canadian government negotiating maximum retail price caps, whereas U.S. federal law traditionally barred government price negotiation.

Drug Re-importation Anomaly

The trade contradiction where the identical facility (e.g., Pfizer in Ireland) exports the same drug (e.g., Lipitor) to both Canada and the U.S., but American pharmacies are legally barred from buying the cheaper Canadian stock.

FDA Foreign Clinical Trial Policy

The regulatory standard under which the U.S. FDA declines automatic acceptance of foreign clinical trial results (e.g., from Germany or Switzerland), requiring independent regulatory verification.

Drug Importation Rationales (Proponents)

The argument that permitting Canadian drug imports reduces out-of-pocket costs for American patients who skip or ration necessary medications due to high domestic prices.

Drug Importation Rationales (Critics)

The argument opposing cross-border drug importation due to risks of counterfeit drugs entering the supply chain, regulatory oversight gaps, and supply shortages in Canada.

Economic Rationales for Trade Intervention

Four key economic arguments justifying government protectionism: fighting unemployment, protecting infant industries, promoting industrialization, and improving comparative positions.

Unemployment Tariffs (Benefit and Risk)

A trade policy that protects domestic jobs in threatened industries (the benefit) at the expense of higher consumer prices, reduced choices, and retaliatory foreign tariffs (the risk).

Infant Industry Argument

The economic rationale that newly established domestic industries require temporary trade barriers against established foreign rivals until they gain scale and competitiveness.

Infant Industry Protection Pitfall

The risk that protected domestic sectors become permanently dependent on government tariffs, fail to innovate, and remain globally uncompetitive.

Industrialization Protectionism

Trade protectionist policies utilized by developing economies to cultivate manufacturing sectors and diversify away from agrarian dependence, despite potential inefficiencies.

Strategic Responses to Import Competition

Four business maneuvers available to domestic firms facing foreign rivals: moving operations abroad, focusing on market niches, implementing internal operational innovations, and seeking government protection.

Market Niche Positioning (U.S. Autos)

A strategic countermeasure by U.S. automakers against Japanese competition by dominating minivans and sport utility vehicles (SUVs), segments that initially lacked foreign rivals.

Lean Production

An operational manufacturing philosophy adopted by U.S. automakers to enhance internal efficiency and match Japanese automotive production standards.

Voluntary Export Restraints (VERs)

A non-tariff trade protection mechanism negotiated by the U.S. government with Japan to cap the total volume of Japanese automobiles imported into the U.S.

Asymmetric Trade Lobbying

The political dynamic where consumer opposition to trade tariffs is weak because consumer costs are widely dispersed, whereas producer lobbying is strong due to concentrated industry gains.

Flawed Democracy

A political governance classification characterized by free and fair elections that is simultaneously compromised by weak governance, low civic participation, or media suppression.

World Bank Economic Environments

The $217$ distinct global economic classifications recognized by the World Bank, consisting of $189$ countries and $28$ territories with populations exceeding $30{,}000$.

Emerging Market Population Share

The demographic segment of approximately $4.3\text{ billion}$ people who reside in emerging economies, representing $52\%$ of the global population.

Developed vs. Developing Economies

A structural dichotomy where developed economies possess mature service markets and robust competition, while developing economies rely on agrarian/industrial bases with rapidly evolving infrastructure.

Leapfrogging

The technological phenomenon in developing nations of skipping legacy intermediate infrastructure (e.g., landline telephone networks) directly to modern solutions (e.g., mobile digital banking).

CSR Standardization Trade-off

The executive challenge of reconciling uniform corporate global ethics with host countries' local cultural norms, legal mandates, and economic priorities.

Lax Regulatory Compliance Risk

The risk of consumer boycotts and severe reputational damage in home or international markets incurred by an MNE that complies strictly with permissive host-country environmental standards.

Non-Tariff Trade Barriers (NTBs)

Regulatory and technical hurdles, such as stringent European Union import safety standards, that force foreign exporters to bear high compliance costs or endure market exclusion.

Countervailing Duty (CVD)

A specialized import tariff applied to neutralize foreign government subsidies that artificially suppress the export prices of incoming goods.

State Capitalism

An economic framework wherein the state manages market outcomes, owns critical commercial enterprises, and controls capital allocation, in contrast to open market capitalism.