Global Dimensions Midterm Kimmel

does anyone have notes from daniel lang

acres of farmland Mississippi has

10 million

acres of forest land Mississippi has

19.2 million

farms in Mississippi

34700

top trading partners for Mississippi agriculture

China, Vietnam, Bangladesh, Pakistan, Mexico, Turkey, Canada

most significant export of Mississippi to the countries that manufacture and export textiles

cotton

modes of transportation in Mississippi

air, ground, water (major river, Tenn-Tom waterway, and multiple ports on the coast and in Vicksburg)

Gateway America

a process which extends the shelf life of certain agricultural goods that the coast ports of MS offer

Genuine MS Grown, Made, Crafted

MS Department of Agriculture and Commerce slogan

SUSTA

Southern US Trade Association, which helps fund export assistance for products that are at least 50% US origin (local content requirement), assists with export management companies, made up of farmers' cooperatives, manufacturers, individual farmers, the representatives of southern states, and export management companies

what do the SUSTA, USDA, and MSDAC get together for

to provide travel assistance funding to exporters, export readiness training, translators and interpreters, and assistance with inbound and outbound trade shows

what is based on sustainability in MS

timber harvest

Weyerhauser pine nursery

Brookhaven location where the company plants two trees for every one harvested; harvesting trees on a strategic schedule supports industry and reduces the likelihood of insect infestation and fire

Susan Lawrence

Market Development, Mississippi Department of Agriculture and Commerce

globalization

transformation, a shift toward more integrated and interdependent world economy

pro globalization arguments

greater prosperity in the global economy, more jobs, and lower prices for goods and service

con globalization arguments

WTO protests, job loss vs better jobs, wider gap between poor and rich vs riding tide raises all boats, regulations and environment, loss of national sovereignty

service-learning

credit-bearing, educational experience in which students participate in an organized service activity that meets identified community needs and reflect on the service activity in such a way as to gain further understanding of course content, a broader appreciation of the discipline, and an enhanced sense of civic responsibility

service learning partner

Mississippi Development Authority, which promotes doing business in Mississippi

factors of production

land, labor, capital, energy

3 economic systems

market, command, mixed

market economy

economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced.

command economy

economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government

mixed economy

economic system combining private ownership and free market mechanisms landing between market and command economies

2 political systems

collectivism, individualism

collectivism

political system that emphasizes collective goals as opposed to individual goals

socialism

political system in which society, usually in the form of the government, owns and controls the means of production, Karl Marx

individualism

an emphasis on the importance of guaranteeing individual freedom and self-expression

representative democracy

political system in which citizens periodically elect individuals to represent them in government

communist totalitarianism

a version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship

theocratic totalitarianism

political system in which political power is monopolized by a party, group, or individual that governs according to religious principles

tribal totalitarism

political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power

right-wing totalitarianism

political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, often on the grounds that it would lead to the rise of communism

3 legal systems

common, civil, theocratic

common law

law system based on precedent and customs

civil law

law system based on a very detailed set of written laws and codes

theocratic law

law system based on religious teachings

pseudo-democracies

between pure democracy and complete totalitarianism
-Authoritarian elements capture much of the machinery of state and use this in an attempt to deny basic political and civil liberties
-Russia under Vladimir Putin

privatization

transfers the ownership of state property into the hands of private investors (seen as a way to stimulate gains in economic efficiency by giving new private owners a powerful incentive aka greater profits)

WIPO (World Intellectual Property Organization)

an international organization whose members sign treaties to agree to protect intellectual property, a sub-member of the UN and helps protect ideas, copyrights, trademarks, and patents

intellectual property

products of the mind, ideas (e.g., books, music, computer software, designs, technological know-how).; can be protected by patents, copyrights, and trademarks

Foreign Direct Investment (FDI)

investment made by a foreign company in the economy of another country

Stock of FDI

the total accumulated value of foreign-owned assets at a given time

Foreign Corrupt Practices Act (FCPA)

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions

FCPA allows

it allows for "grease payments or speed money" to speed along or facilitate a performance that was already obligated to be performed

FCPA prohibits

this law makes it illegal to bribe a foreign government official to obtain or maintain business...no taking bribes or other unethical actions

free trade

absence of barriers to the free flow of goods and services between countries

GNI (Gross National Income)

measures the total annual income received by residents of a nation; to measure the country's development

GDP (Gross Domestic Product)

the total market value of all final goods and services produced annually in an economy

GNP (Gross National Product)

the sum of all goods and services produced in a nation in a year

PPP (Purchasing Power Parity)

an adjustment in gross domestic product per capita to reflect differences in the cost of living; allows for more direct comparison of living standards in different countries

GINI index

measures income/economic inequality using a statistical formula. "0" = perfect equality and "100" = perfect inequality

Hofstede's Dimensions of Culture

- Power distance
- individualism vs. collectivism
- uncertainty avoidance
- masculinity vs. femininity
- long-term vs. short-term orientation

power distance

a value orientation that refers to the extent to which less powerful members of institutions and organizations within a culture expect and accept an unequal distribution of power

individualism vs. collectivism

describes whether a person functions primarily as an individual or as part of a group

uncertainty avoidance

the degree to which societies are willing to tolerate uncertainty and risk

masculinity vs. femininity

the relationship between gender and work roles

long term vs short term orientation

theory of the extent to which a culture programs its citizens to accept delayed gratification of their material, social, and emotional needs. It captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors.

staffing approaches

ethnocentric, polycentric, geocentric

staffing policy

concerned with the selection of employees who have the skills required to perform a particular job

ethnocentric approach

staffing policy in which all key management positions are filled by parent-country nationals (international)

ethnocentrism

evaluation of other cultures according to preconceptions originating in the standards and customs of one's own culture.

polycentric approach

staffing policy that requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters (localization)

geocentric approach

staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality (global standardization & transnational)

HDI (Human Development Index)

an attempt by the UN to assess the impact of a number of factors on the quality of human life in a country, standard of living

constant returns to specialization

the units of resources required to produce a good (cocoa or rice) are assumed to remain constant no matter where one is on a country's production possibility frontier (PPF)

diminishing returns

occurs when more units of resources are required to produce each additional unit____ show that is is not feasible for a country to specialize to the degree suggest be the simple Ricardian model. ___ to specialization suggest that the gains from specialization are likely to be exhausted before specialization is complete.

economies of scale

-the cost advantages associated with large scale production-new trade theory is the observed pattern of trade in the world economy may be due to the ability of firms in a given market to capture first-mover advantages

define Porter's Diamond of Competitive Advantage and the four components of it

these components shape the environment in which local firms compete, and promote or impede the creation of competitive advantage. the four are... factor endowments; demand conditions; related and supporting industries; firm strategy, structure, and rivalry

define each of the four components of Porter's Diamond of Competitive Advantage

1. factor endowments- nations position in factories of production
2. demand conditions- the nature of home demand for the industry's product or service
3. related and supporting industries- the presence or absence of supplier industries and related industries that are internationally competitive
4. firm strategy, structure, and rivalry- the conditions governing how companies are created, organized, and managed and the nature of domestic rivalry

mercantilism

an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports

absolute advantage

in the production of a product when it is more efficient than any other country at producing it

comparative advantage

the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

product life cycle theory

a theory helps to explain that production becomes more international as the product matures; four stages: introduction, growth, maturity, and decline

factor endowments

a country's endowments with resources such as land, labor, and capital

new trade theory

the observed pattern of trade in the world economy may be due in part to the ability of firms in a given market to capture first-mover advantages

balance of payments

the difference between the flow of money into and out of a country

components of balance of payments

current, capital, and financial accounts

current account

in the balance of payments, records transactions involving the export or import of goods and services

capital account

in the balance of payments, records transactions involving one-time changes in the stock of assets

financial account

in the balance of payments, records transactions that involve the purchase or sale of assets

5 ethical approaches

1. Strawman (friedman doctrine, cultural relativism, the righteous moralist, the native immoralist)
2. Utilitarian
3. Kantian
4. Rights Theories
5. Justice Theories

strawman approach

raised by scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision making in a multinational enterprise

SM - Friedman Doctrine

the only social responsibility of business is to increase profits, so long as the company stays within the rules of law

SM - cultural relativism

the belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate

SM - righteous moralist

one who claims that a multinational's home-country standard of ethics are the appropriate ones for companies to follow in foreign countries

SM - naive immoralist

one who asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either

utilitarian ethics

the moral worth of actions or practices is determined by their consequences

kantian ethics

the belief that people should be treated as ends and never as means to the ends of others

rights theories

a twentieth-century theory that recognizes that human beings have fundamental rights and privileges that transcend national boundaries and cultures

justice theories

focus on the attainment of a just distribution of economic goods and services

stakeholders

the individuals or groups that have an interest, stake, or claim in the actions and overall performance of a company

internal stakeholders

people who work for or who own the business such as employees, the board of directors, and stockholders

external stakeholders

individuals or groups that have some claim on a firm such as customers, suppliers, and unions

whistle blower

employee who detects and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them

tragedy of the commons

a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole

moral courage

the will to stand up for what is right, regardless of personal cost (walk away from profit, because its unethical)

determinants of culture model

religion
political
philosophy
economic philosophy
education
language
social structure

determinants of ethical model

societal culture
decision making processes
leadership
unrealistic performance goals
organizational culture
personal ethics