global test 1

values

abstract ideals of what a society believes to be good, right, and desirable 

norms

social rules and guidelines that prescribe appropriate behavior in particular situations 

folkways

routine conventions of everyday life, such as customs of dress or table manners 

social structure

basic social organization of a society encompassing the individual group dimension and the stratification dimension 

Globalization of markets

merging of historically distinct national markets into one huge global marketplace 

Which precedes one another

GATT proceeds WTO

foreign direct investment (FDI)

is a firm that invests directly in productive assets in a foreign country rather than exporting it 

market economy

economic system in which prices are free from government control

common law system

 legal system based on tradition, precedent (what came before), and customs in which judges play a central interpretive role 

foreign corrupt practices act (FCPA)

US law that makes it illegal for American companies to bribe government officials to gain business 

purchase power parity

measure of a nation's GDP, adjusted for differences in the local cost of living, used to compare living standards across countries 

late mover disadvantage

the cost and disadvantages a firm faces when it faces a foreign market only after competitors are well established

economic risk

likelihood of mismanagement of a nation's economy 

power distance

cultural dimension that describes the extent to which a society accepts and on equal distribution of power in institutions 

ethnocentrism

assuming one's own culture is superior to the host country's culture

ethical dilema

situation in which none of the available ethical alternatives seems acceptable 

the precationary principle

the principle holding that firms should take protective action against potential environmental risks

CSR

corporate social responsibility

culture

A complex phenomenon that includes knowledge, belief, morals, laws, customs, and other capabilities acquired by people as members of society

GATT

general agreement of tariffs and trade