LORENS IBT MIDTERMS

INTERNATIONAL BUSINESS

The trade of Goods and service goods, services, technology, capital and/or knowledge across national borders

TRADE

The action of buying and selling goods and services.

INTERNATIONAL TRADE

The exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services

UNILATERAL AGREEMENT

A one-sided contract agreement in which an offeror promises to pay only after the completion of a task by the offeree

BILATERAL AGREEMENT

Also called a clearing trade or side deal

An agreement between parties or states that aims to keep trade deficits to a minimum.

TRILATERAL AGREEMENT

The beginning of more extensive cooperation and stronger alliances among the US, Japan and the Philippines 

MARKETPLACE

is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods.

GLOBALIZATION

the growth in international exchange of goods, services, and capital, and the increasing levels of integration that characterize economic activity.

WORLD ECONOMY

the sum of activities that take place both within a country and between different countries.

INVESTMENT

putting capital to use today in order to increase its value over time

FOREIGN EXCHANGE

the conversion of one country's currency into another.

BARRIERS

barricade, blockade, boundary, fence, hurdle, impediment, limit, obstacle, railing, roadblock, wall.

FOREIGN MARKET

any markets outside of a company's own country.

EXPORTING

the practice of producing a good or service in one country and selling it to consumers in another country.

IMPORTING

the act of introducing new goods, customs, or ideas into a country from another country;

DECISION MAKING

the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

TARIFF

a tax or duty to be paid on a particular class of imports or exports.

EMBARGO

an official ban on trade or other commercial activity with a particular country.

LIBERALIZATION

The removal or loosening of restrictions on something, typically an economic or political system.

CULTURE

The shared beliefs, values, customs, behaviors, and artifacts that characterize a group and are passed down from generation to generation.

VALUES

Individual beliefs that motivate people to act one way or another.

ATTITUDE

Learned, stable evaluations of people, objects, or ideas (ABC: Affect, Behavior, Cognition).

BEHAVIOR

A person’s external reaction to their environment, observable and measurable. 

The way an organism acts or conducts itself, especially toward others.

SOCIAL STRUCTURE

Organized, stable patterns of social relationships, institutions, and norms.

EDUCATION

Lifelong process of acquiring knowledge, skills, values, and habits.

RELIGION

Structured system of beliefs and practices focusing on sacred or divine forces. 

It involves a relationship with what is deemed sacred or divine, typically including ethical codes and rituals.

PERSONAL COMMUNICATION

Exchange of information between specific individuals with privacy and feedback. 

One sender to one (or few) receivers. It is a dialogue with instant feedback.

CROSS-CULTURAL BUSINESS

The effort of a company to ensure its employees interact effectively with professionals from diverse national, regional, or ethnic backgrounds.

BENEFITS

Increased innovation through varied perspectives, improved competitive advantage, and higher profitability through diverse teams.

CULTURAL DIMENSIONS

Understanding differences in power distance, collectivism vs. individualism, uncertainty avoidance, and long-term orientation is crucial for negotiations and management.

CHALLENGES

Miscommunication, management challenges arising from different beliefs/values, and risks associated with failing to understand local customs.

DEEP CULTURAL LEARNING

Study the values, communication styles, and decision-making processes of the target market rather than relying on surface-level knowledge.

RELATIONSHIP BUILDING

In many cultures, building personal trust and relationships comes before business negotiations.

CULTURAL TRAINING

Providing training for employees to avoid cultural faux pas and improve collaboration.

ADAPT COMMUNICATION

Be aware of low-context (direct, task-oriented) versus high-context (indirect, relationship-oriented) communication styles.

PRODUCT LOCALIZATION

Tailor products, services, and marketing messages to fit local tastes and regulations.

CAREER DECISIONS

Prioritizing "work-life balance" by choosing a job with flexible hours, or valuing "growth" by seeking roles with higher learning opportunities.

ETHICAL DECISION-MAKING

Choosing to act with "integrity" (e.g., being honest) even when it is difficult

INTERPERSONAL RELATIONSHIPS

Practicing "empathy" and "respect" to build stronger connections with family and colleagues.

LIFE DIRECTION

Focusing on "health" or "financial stability" to guide long-term goals.

PRINCIPLES

Fundamental truths or propositions that serve as the foundation for belief or behavior.

BELIEFS

Specific attitudes or convictions held about what is true or important.

IDEALS

Standards of perfection or excellence that one aims for.

ETHICS

Moral principles that govern a person's behavior.

STANDARDS

Levels of quality or attainment that one sets for themselves.

CONVICTION

Firmly held beliefs or opinions.

PERSONAL/INDIVIDUAL

Integrity, Authenticity, Courage, Compassion.

SOCIAL/ETHICAL

Equality, Justice, Respect, Responsibility.

WORK/PROFESSIONAL

Efficiency, Excellence, Innovation, Loyalty.

ABC - AFFECT, BEHAVIOR, COGNITION

Key Aspects of Attitudes

FORMATION

Attitudes are learned through classical conditioning (association), operant conditioning (rewards/punishments), and observational learning from others.

FUNCTIONS

help individuals organize knowledge, express values, maintain self-esteem (ego-defensive), and navigate social situations.

STABILITY

While they can change, they tend to be relatively enduring once formed.

ATTITUDE CHANGE

Attitudes can be altered through persuasion, cognitive dissonance (feeling discomfort when behavior contradicts beliefs), and new experiences.

ATTITUDE VS TRAITS

Attitudes are generally focused on specific objects or situations, whereas traits are broader personality characteristics.

MEASUREMENT

They are measured through self-reporting (surveys) or indirect methods that measure unconscious associations.

SOCIAL INSTITUTIONS

Established sets of norms and subsystems that meet basic societal needs, such as the family, education, religion, and the economy.

SOCIAL STATUS

The recognized position or rank a person holds within a social system, which can be achieved or ascribed.

ROLES

The behaviors, obligations, and privileges expected of someone occupying a particular status.

SOCIAL GROUPS

Two or more people who interact, share similar values, and have a sense of unity, including primary (intimate) and secondary (impersonal) groups

NORMS AND CUSTOMS

Shared standards of acceptable behavior that guide interactions, often differing by culture

STABILITY AND ORDER

By defining roles and expectations, social structures provide order and predictability in daily life.

CONSTRAINT VS FREEDOM

While organizing society, these structures can also limit individual freedom, enforce conformity, and create inequalities based on class, race, or gender

LEVELS OF OPERATION

Social structure manifests at the macro level (societal institutions), meso level (organizations), and micro level (interpersonal interactions).

DURABILITY

Social structures are often durable and persist across generations, although they can change over time.

FAMILY

Provides a framework for raising children, assigning responsibilities, and ensuring safety.

EDUCATION SYSTEM

Imparts knowledge, socializes individuals, and defines roles like student and teacher.

GOVERNMENT/LAW

Maintains order and manages resources through organized political structures.

SOCIAL CLASS

Creates hierarchies of wealth and power that determine social, economic, and political opportunities.

IMPORTANCE OF EDUCATION

It is crucial for developing critical thinking, improving health, fostering innovation, and securing employment.

GOAL 4 (UN SUSTAINABLE DEVELOPMENT)

Ensures inclusive and equitable quality education and promotes lifelong learning opportunities for all by 2030, including early childhood, technical, and tertiary education

BENEFITS OF EDUCATION

Each year of education reduces conflict risks, promotes health, and acts as a foundation for economic development and personal development.

FUNCTIONS OF RELIGION

Provides meaning to life, offers comfort, and builds community.

KEY BELIEFS

May involve faith in one or more gods/spirits (theistic) or be more humanistic/naturalistic

SPIRITUALITY VS RELIGION

Growing numbers of people identify as "spiritual but not religious," focusing on personal connection to a higher power without adhering to organized structures, notes Psychology Today

BENEFITS OF RELIGION

Research shows that religious participation can improve mental health, foster social support, and help manage stress.

SPECIFIC AUDIENCE

Unlike mass communication, which targets the general public, personal communication is intended for a specific person or a small group.

TWO-WAY INTERACTION

It allows for immediate feedback. You can ask questions, clarify points, and get an instant response.

HIGH LEVEL OF PRIVACY

The message is usually meant only for the parties involved and is not shared with the public.

DIRECT & FLEXIBLE

It can be formal (a business meeting) or informal (chatting with a friend), and the tone can be adjusted instantly based on the listener's reaction

ORAL

Face-to-face conversations, phone calls, voice notes.

WRITTEN

Personal letters, emails, text messages, DM

NON-VERBAL

Body language, eye contact, and gestures during a talk.

MASS COMMUNICATION

One sender to many receivers (e.g., Radio, TV, Newspapers). It is usually one-way with delayed feedback.

OUTSOURCING

the act of a company relying on an external provider for a business process that otherwise would be internal.  

CONTRACTUAL MODE

involves the use of a contract rather than investment mode.

LICENSING

the granting of permission by the licenser to the licensee to use intellectual property rights, such as trademarks, patents, brand names or technology under the defined conditions.

FRANCHISING

joint venture between a franchisor and a franchisee. It sells the right to use its name and idea. The franchisee buys the right to sell the franchisor's goods or services under an existing business model and trademark.

INVESTMENT

an asset or item accrued with the goal of generating income or recognition. the purchase of goods that are not consumed today but are used in the future to generate wealth.

JOINT VENTURE

is a combination of two or more parties that seek the development of a single enterprise or project for profit, sharing the risks associated with its development.

WHOLLY OWNED SUBSIDIARIES

operate as a separate and distinct corporation from its parent company. This benefits the company for the purposes of taxation, regulation, and liability. The subsidiaries can sue and be sued separately from their parent.

1. 1. THE UNITED STATES 

2. 2. CHINA 

3. 3. JAPAN 

4. 4. HONG KONG 

5. 5. SINGAPORE 

6. 6. THAILAND 

7. 7. GERMANY 

8. 8. KOREA 

9. 9. CHINESE TAIPEI 

10. 10. THE NETHERLANDS

Top 10 export partners of the Philippines