chapter 1
The activity of producing goods or services to earn a profit.
➡️ What is business?
Goods brought into a country are called this.
➡️ What are imports?
The shared beliefs, values, and practices of a society.
➡️ What is culture?
An economic system where supply and demand determine prices.
➡️ What is a market economy?
The increasing integration of economies worldwide.
➡️ What is globalization?
The exchange of goods or services between a buyer and seller.
➡️ What is a transaction?
Goods sold to another country are called this.
➡️ What are exports?
Rules of behavior considered acceptable within a culture.
➡️ What are norms?
An economic system where the government controls resources.
➡️ What is a command economy?
One positive effect of globalization.
➡️ What is increased trade / job creation / access to markets?
This distinguishes international business from domestic business.
➡️ What is crossing national borders?
Investment that does NOT involve management control.
➡️ What is Foreign Portfolio Investment (FPI)?
One determinant of culture related to beliefs about right and wrong.
➡️ What is religion?
An economy that combines private ownership with government involvement.
➡️ What is a mixed economy?
One negative effect of globalization.
➡️ What is income inequality / job loss / environmental damage?
One key reason globalization has increased in recent decades.
➡️ What are improved transportation and communication technologies?
A business agreement allowing one company to use another’s brand or process.
➡️ What is a licensing agreement?
The difference between spoken and unspoken language.
➡️ What is verbal vs non-verbal communication?
The phase of the business cycle marked by declining economic activity.
➡️ What is contraction?
The conflict between capitalism and communism after WWII.
➡️ What is the Cold War?
A disadvantage of international business for host countries.
➡️ What is loss of control over domestic industries?
A key difference between a foreign subsidiary and a branch plant.
➡️ What is ownership and level of control?
This cultural dimension measures comfort with inequality in society.
➡️ What is Hofstede’s power distance?
The ability of a country to produce a good at a lower opportunity cost.
➡️ What is comparative advantage?
The organization that provided financial assistance during the Asian Financial Crisis.
➡️ What is the IMF?