International BUS TEST 1

Globalization

The shift toward a more integrated and interdependent world economy in which national economies are increasingly connected through trade, investment, finance, technology, and communication.

Globalization of Markets

The merging of historically distinct and separate national markets into one global marketplace where consumer tastes begin to converge and firms sell standardized products worldwide.

Globalization of Production

The sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production.

Foreign Direct Investment (FDI)

An investment made by a company into business operations located in another country, typically through acquiring or establishing facilities abroad.

World Trade Organization (WTO)

An international organization that regulates global trade, enforces trade agreements, facilitates negotiations, and resolves trade disputes between member countries.

International Monetary Fund (IMF)

An international organization that promotes global monetary stability by providing financial assistance and policy guidance to countries experiencing economic difficulties.

World Bank

An international financial institution that provides loans and financial assistance to developing countries to promote economic development and reduce poverty.

Political Economy

The interaction between a country’s political system, economic system, and legal system and how these systems influence one another and shape business activity.

Collectivism

A political philosophy that emphasizes that the needs and goals of society as a whole should take precedence over individual freedoms.

Individualism

A political philosophy that emphasizes individual freedom, self-expression, and the protection of individual rights.

Democracy

A political system in which government leaders are elected by the people and held accountable through free and fair elections.

Totalitarianism

A political system in which one party or leader exercises complete control over political, economic, and social life and restricts individual freedoms.

Market Economy

An economic system in which productive resources are privately owned and production decisions are determined by supply and demand in free markets.

Command Economy

An economic system in which the government owns most productive resources and centrally plans production, pricing, and distribution.

Mixed Economy

An economic system that combines elements of both market and command systems, with some industries privately owned and others owned or regulated by the government.

Common Law

A legal system based on tradition, precedent, and judicial decisions in which past court rulings guide future cases.

Civil Law

A legal system based on comprehensive written legal codes that clearly specify laws and procedures.

Theocratic Law

A legal system based on religious teachings and interpreted by religious authorities.

Property Rights

The legal rights that individuals or businesses have to use resources, earn income from them, and exclude others from using them.

Corruption

The abuse of public office or power for private gain, often involving bribery, extortion, or misuse of authority.

Foreign Corrupt Practices Act (FCPA)

A United States law that prohibits companies and individuals from bribing foreign government officials to obtain or retain business.

Patent

A government-granted exclusive right allowing an inventor to produce and sell an invention for a specific period of time.

Copyright

Legal protection that grants creators exclusive rights to reproduce and distribute their original works.

Trademark

A legally protected symbol, name, or design that distinguishes a company’s goods or services from others.

Product Liability

The legal responsibility of a firm for damages or injuries caused by defective or unsafe products.

Gross National Income (GNI)

The total income earned by a nation’s residents and businesses, including income earned abroad, during a specific period.

Purchasing Power Parity (PPP)

An economic adjustment that accounts for differences in the cost of living between countries when comparing income levels.

Human Development Index (HDI)

A composite measure of a country’s development based on life expectancy, education level, and income per capita.

Innovation

The development of new products, processes, management practices, or strategies that create value and drive economic growth.

Entrepreneur

An individual who identifies business opportunities and takes risks to develop and commercialize innovative products or services.

Deregulation

The removal or reduction of government controls and restrictions on business activities.

Privatization

The transfer of ownership of state-owned enterprises to private investors.

Political Risk

The likelihood that political instability, government change, or social unrest will negatively affect business operations.

Economic Risk

The likelihood that economic mismanagement, inflation, currency instability, or recession will harm business performance.

Legal Risk

The possibility that a country’s legal system will fail to enforce contracts or protect property rights.

Transition Economies

Countries that are moving from centrally planned economic systems to market-based economic systems.

Culture

The collective mental programming of people in a society that shapes their values, beliefs, norms, and behaviors.

Values

Deeply held beliefs about what is considered right, good, and desirable in a society.

Norms

Social rules and guidelines that prescribe appropriate behavior in specific situations.

Folkways

Everyday customs and conventions whose violation is not considered morally serious.

Mores

Norms that have strong moral significance and whose violation may result in serious consequences.

Social Stratification

The hierarchical classification of individuals into social categories based on factors such as wealth, occupation, and family background.

Caste System

A rigid form of social stratification in which an individual’s social position is determined at birth and cannot be changed.

Class System

A flexible form of social stratification in which individuals can move between social positions through achievement or luck.

Ethnocentrism

The belief that one’s own culture is superior to others and the tendency to judge other cultures by one’s own standards.

Cross-Cultural Literacy

An understanding of how cultural differences affect communication, management practices, and business interactions.

Power Distance

The extent to which less powerful members of a society accept and expect unequal distribution of power.

Individualism vs Collectivism (Hofstede)

The degree to which individuals are integrated into groups and whether people prioritize personal goals or group goals.

Masculinity vs Femininity

The extent to which a society values competitiveness and achievement versus cooperation and quality of life.

Uncertainty Avoidance

The degree to which members of a society feel uncomfortable with ambiguity and uncertainty.

Long-Term Orientation

The extent to which a society emphasizes future rewards, perseverance, and thrift rather than short-term results.

Indulgence vs Restraint

The extent to which a society allows free gratification of desires versus suppressing gratification through strict social norms.