International Business: Globalization, Political Economy, Economic Development, Ethics, and Culture

Practice flashcards covering globalization drivers and institutions, political, economic, and legal frameworks, economic development metrics, ethics and CSR, and cultural dimensions.

Globalization refers to the shift from distinct national markets and economic units toward one huge ___________.

global market

Globalization occurs across two primary dimensions: the globalization of markets and the globalization of ___________.

production

A Multinational Enterprise (MNE) is defined as any company that owns business operations in more than ___________ country.

one

The four traditional factors of production sourced globally by firms are labor, land, energy, and ___________.

capital

When a company directly invests in business operations and production facilities in a foreign country, it is undertaking ___________.

Foreign Direct Investment (FDI)

Established in $1995$ to succeed GATT, the ___________ polices world trade and enforces multinational trade agreements.

World Trade Organization (WTO)

Created at Bretton Woods in $1944$, the ___________ serves as an international lender of last resort for nations experiencing economic crises.

International Monetary Fund (IMF)

The international forum known as the ___________ comprises the finance ministers and central bank governors of the $19$ largest economies plus the European Union and the European Central Bank.

G20

In the global manufacturing network for the Boeing 787, the center fuselage is fabricated in Grottaglie, ___________, while the forward fuselage is built in Nagoya, Japan and Wichita, Kansas.

Italy

Political systems are assessed along two main axes: individualism versus collectivism, and democracy versus ___________.

totalitarianism

Historically, socialism split into two camps: communists who advocated violent revolution and totalitarian dictatorship, and ___________ who worked to realize socialism through democratic avenues.

social democrats

A core tenet of individualism is that the economic welfare of society is maximized when individuals are permitted to pursue their own ___________ interests.

economic

In a pure ___________ economy, all productive activities are privately owned, and supply and demand alone determine production volumes and prices.

market

In a pure ___________ economy, the state owns all factors of production and central authorities dictate all production quotas and prices.

command

A legal framework based on tradition, precedent, and custom—requiring extensive and detailed business contracts—is known as ___________ law.

common

In a ___________ law system based on detailed codification, commercial contracts tend to be considerably shorter and less technical because legal principles are pre-established in statutory codes.

civil

A legal tradition grounded in religious texts, such as Islamic legal frameworks prohibiting the payment or receipt of interest, is classified as ___________ law.

theocratic

While Gross Domestic Product measures domestic output, ___________ calculates the total annual income earned by a nation's residents, regardless of where production takes place.

Gross National Income (GNI)

To adjust income metrics for cross-national variations in the cost of living, economists calculate ___________ relative to the United States baseline.

Purchasing Power Parity (PPP)

According to the lecture's comparative table, Switzerland reported a nominal GDP per capita of $US\$92{,}000$, but a PPP-adjusted GNI of ___________ due to high living costs.

$$US\$83{,}000$$

The United Nations evaluates overall quality of life through the Human Development Index (HDI), which tracks educational attainment, income sufficiency, and ___________.

life expectancy at birth

A major limitation of headline GDP and GNI indicators is that they fail to capture unrecorded economic activity within black or ___________ economies.

shadow

For innovation and entrepreneurship to flourish and sustain economic development, a country requires both a market economy and strong legal protection of ___________.

property rights

The probability that government decisions or political forces will drastically disrupt the business climate of an MNE is designated as ___________ risk.

political

The probability that a trading partner will breach a commercial contract or opportunistically expropriate property rights is known as ___________ risk.

legal

When a shared natural resource owned by no single entity is depleted through unrestrained individual consumption, this dynamic is known as the ___________.

Tragedy of the Commons

The philosophy asserting that business leaders must balance economic performance with positive societal impacts is referred to as ___________.

Corporate Social Responsibility (CSR)

The ethical viewpoint that host-country cultural practices exclusively determine ethical behavior—summarized as 'when in Rome, do as the Romans do'—is called cultural ___________.

relativism

The ethical perspective asserting that universal moral standards exist globally and that certain actions are fundamentally unacceptable everywhere is called ethical ___________.

universalism

Culture is defined as a system of shared values and norms that jointly constitute a society's ___________ for living.

design

In the study of culture, abstract principles regarding what a society views as good, desirable, and right are designated as ___________.

values

Routine conventions and social etiquette of everyday life that carry minimal moral significance are known as ___________.

folkways

Social rules that are considered fundamental to the functioning of society and whose violations invoke serious legal or moral sanctions are classified as ___________.

mores

The hierarchical categorization of individuals within a society based on socioeconomic characteristics that endure across generations is termed social ___________.

stratification

In cross-cultural communication, maintaining sustained eye contact denotes confidence in the United States but is often regarded as ___________ in China, Japan, and South Korea.

disrespect

In proxemics and personal space categorization, the innermost zone reserved exclusively for romantic partners and immediate family members is termed the ___________ space.

intimate

According to Geert Hofstede, the dimension describing how willingly less powerful members tolerate unequal power distribution is ___________ Distance.

Power

In Hofstede's model, cultures with high ___________ Avoidance prefer strict rules, formal procedures, and predictable environments over ambiguous situations.

Uncertainty

A culture that prioritizes quality of life, relational harmony, and work-life balance over aggressive material achievement reflects low Hofstede ___________.

Masculinity

Hofstede's dimension capturing whether a society emphasizes delayed gratification, thrift, and perseverance over immediate quarterly payoffs is ___________ Orientation.

Long-Term