Globalization
This term describes the increasing interconnectedness of economies, cultures, and societies worldwide.
What is globalization?
This Dutch researcher developed a cultural dimensions theory comparing national business cultures.
Who is Geert Hofstede?
In this type of government, trade policies are often influenced by free-market principles, minimal state intervention, and private enterprise.
What is a democracy?
This classical economist introduced the concept of absolute advantage.
This non-tariff barrier limits the quantity of a good that can be imported.
What is a quota?
The expansion of global trade, outsourcing, and multinational corporations is driven by these technological advancements.
This cultural dimension measures the degree to which people accept unequal power distribution.
What is power distance?
Countries with this type of government, characterized by state control of the economy, may restrict foreign trade to protect domestic industries.
What is a command economy (or a communist government)?
A country should specialize in goods where it has the lowest opportunity cost, according to this theory.
What is comparative advantage?
These government payments support domestic industries and give them a competitive advantage.
What are subsidies?
This organization, created in 1995, oversees global trade rules and settles disputes between nations.
What is the World Trade Organization (WTO)?
In international business, this term describes when companies misinterpret another country’s customs, leading to failure.
What is cultural miscommunication?
Trade agreements in these political systems can be unpredictable, as rulers or ruling parties may change policies without democratic oversight.
This theory suggests countries will export goods that use their abundant factors of production.
A country banning the import or export of specific goods is implementing this policy.
What is an embargo?
A company that operates in multiple countries with production or services across borders.
What is a multinational corporation (MNC)?
This type of culture emphasizes personal achievements and independence over group harmony.
What is individualism?
This type of government structure, where power is divided between national and regional governments, can lead to complex trade regulations across different jurisdictions.
What is a federal system?
The idea that countries should protect emerging industries until they can compete globally.
What is the infant industry argument?
A government regulation that sets product standards to limit imports.
What is a technical barrier to trade?
This economic trend allows businesses to move production to locations with the lowest costs.
Cultures that prioritize long-term relationships, reputation, and group loyalty are described as this.
What is collectivism?
In monarchies with absolute control, trade policies are often determined by this single ruling entity.
This theory explains why some nations become dominant in producing specific goods over time due to historical industry presence.
What is the New Trade Theory?
This policy requires a percentage of a product’s components to be made domestically.
What is a local content requirement?