The Environment of International Business

This set of flashcards covers key terms and definitions related to international business and its environment, aiding in exam preparation.

International Business

The study of transactions that take place across national borders, aiming to satisfy the needs and wants of individuals and organizations.

Globalization

The shift toward a more integrated and interdependent world economy, characterized by widespread interdependence among people and nations.

Key Performance Indicator (KPI)

A set of quantifiable measurements used to gauge a company’s overall long-term performance.

Gross Domestic Product (GDP)

The total value of all goods and services produced in a given time period, adjusted for inflation to measure actual growth.

Real GDP

Nominal GDP adjusted for inflation, providing a more accurate measure of economic growth.

Nominal GDP

The total value of all goods and services produced in an economy, measured at current prices without adjusting for inflation.

Inflation

A quantitative measure of how quickly the prices of goods in an economy are increasing, often due to high demand.

Deflation

A decrease in the general price level of goods and services, often resulting from reduced demand.

Unemployment Rate

The proportion of the labor force that is without work but actively seeking employment.

Corporate Social Responsibility (CSR)

A management concept wherein companies integrate social and environmental concerns in their business operations.

Cultural Convergence

The growing similarity between national cultures, influenced by global brands, media, and common global experiences.

Ethnocentrism

A belief in the superiority of one's own ethnic group, often leading to a dominance of home culture in multinational firms.

Psychic Distance

A measure of the perceived differences between home and foreign cultures that affects business decision-making.

Corporate Culture

The shared values, traditions, customs, and policies of a corporation, influencing employee behavior and performance.

Socialization

The process by which individuals learn the norms and values of their surrounding culture.

Hofstede’s Dimensions

Cultural value dimensions identified by Geert Hofstede that help to compare and contrast cultures.

Sustainable Development Goals (SDGs)

A collection of 17 global goals set by the United Nations to address global challenges and achieve a better future for all.

Interest Rate

The amount charged on top of the principal by a lender to a borrower for the use of assets, or the amount earned from a deposit.

Global Trade

The exchange of goods and services across national boundaries; it enhances market competition and expands consumer options.

Consumer Price Index (CPI)

A theoretical basket of goods used to measure inflation by tracking price changes over time.