International Trade, Entrepreneurship, and Organizational Culture

Flashcards covering key concepts from chapters on international trade, entrepreneurship, and organizational culture.

International Trade Dilemmas

Challenges and conflicts that arise in the context of global trade activities.

National Competitiveness Factors (Michael Porter)

Conditions that influence a nation's ability to compete in international markets, including factors like resources, infrastructure, and firm strategy.

Currency Exchange Rates

The rate at which one currency can be exchanged for another, affecting international trade and financial transactions.

Outsourcing

The practice of obtaining goods or services from an external provider, often to cut costs.

Offshoring

Relocating business processes or production to a different country, often to reduce labor costs.

International Expansion Strategies

Various methods companies use to enter foreign markets, such as exporting, franchising, licensing, joint ventures, and wholly owned subsidiaries.

Theodore Levitt’s Global Strategy Assumptions

Assumptions supporting the idea that there is a single global market for certain products.

Exporting

The process of sending goods or services to another country for sale.

Franchising

A method of scaling a business whereby the owner of a trademark or a business model allows others to operate under that brand.

Licensing

An agreement where one party allows another to use its intellectual property for a specified period.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for a particular project.

Wholly Owned Subsidiary

A company whose entire stock is owned by another company.

Global Strategy

A strategy that focuses on selling the same product across different markets with minimal changes.

Multi-Domestic Strategy

A strategy that emphasizes local responsiveness and adapts products to each market.

Transnational Strategy

A strategy that seeks to balance global efficiency and local responsiveness.

Characteristics of Entrepreneurs

Key traits that define entrepreneurs, including risk tolerance, innovation, and leadership.

Opportunity Recognition

The ability to identify a market need that can be satisfied by a new product or service.

Opportunity Evaluation

The process of assessing the viability and potential profitability of a business opportunity.

Angel Investors

Individuals who invest their personal funds in startups in exchange for equity.

Venture Capitalists

Professional investors who provide funding to startups and small businesses with long-term growth potential.

Crowd Funding

The practice of funding a project or venture by raising small amounts of money from a large number of people.

Generic Strategies Application

The use of basic strategies such as cost leadership, differentiation, or focus to gain competitive advantage.

Co-optition

A strategy involving collaboration between competitors to achieve mutual goals.

Forbearance

The act of refraining from enforcing rights or claims that a business is entitled to.

Market Commonality

The extent to which competitors share the same markets.

Market Dependence

The degree to which a company relies on a specific market or market segment for its revenue.

Organizational Culture

The shared values, beliefs, and norms that influence how members of an organization interact and work.

Sustaining Organizational Culture

Methods and practices used to maintain and reinforce an organization's core values over time.

Reward and Incentive Systems

Structures designed to motivate employees by linking compensation and benefits to performance.

Corporate Governance

The system by which companies are directed and controlled, focusing on the relationship between stakeholders.

Characteristics of a Good Board

Features that enhance the effectiveness of a corporate board, such as diversity, independence, and expertise.

CEO Duality

A situation where the CEO also serves as the chair of the board, potentially leading to conflicts of interest.

Agency Theory

A theory explaining the relationship between principals and agents in business, emphasizing conflicts of interest.

Takeover Constraint

Limits that prevent a company's board of directors from resisting a takeover attempt.

Shareholder Activism

The efforts of shareholders to influence a company's behavior and decisions.

Book vs. Market Value

A comparison between the value of a company according to its balance sheet (book value) versus the market's valuation.