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Globalization
Cultural Differences
International Trade
100
Refers to the shift toward a more integrated and interdependent world economy.
What is Globalization?
100
is an understanding of how cultural differences across and within nations can affect the way in which business is practiced
What is Cross-cultural literacy?
100
a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country
What is free trade?
200
* maintains international peace and security develops friendly relations among nations * cooperates in solving international problems and in promoting respect for human rights * is a center for harmonizing the actions of nations
What is The United Nations (1945)?
200
is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living
What is Culture?
200
suggests that countries should specialize in the production of those goods they produce most efficiently and buy goods that they produce less efficiently from other countries, even if this means buying goods from other countries that they could produce more efficiently at home
What is comparative advantage?
300
is any business that has productive activities in two or more countries
What is a multinational enterprise (MNE)?
300
is the medium through which individuals learn many of the language, conceptual, and mathematical skills that are indispensable in a modern society
What is formal education?
300
as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade
What is The product life-cycle theory - (Raymond Vernon)?
400
* Critics argue that firms avoid costly efforts to adhere to labor and environmental regulations by moving production to countries where such regulations do not exist, or are not enforced * Supporters claim that tougher environmental and labor standards are associated with economic progress as countries get richer from free trade, they implement tougher environmental and labor regulations
What is how globalization affect the labor markets and the environment?
400
* Power distance - how a society deals with the fact that people are unequal in physical and intellectual capabilities * Uncertainty avoidance - the relationship between the individual and his fellows * Individualism versus collectivism - the extent to which different cultures socialize their members into accepting ambiguous situations and tolerating ambiguity * Masculinity versus femininity -the relationship between gender and work roles
What is Geert Hofstede's four dimensions of culture?
400
the extent to which a country is endowed with resources like land, labor, and capital
What are factor endowments?
500
* lower transportation costs - firms can disperse production to economical, geographically separate locations lower information processing and communication costs - firms can create and manage globally dispersed production systems * low cost global communications networks - help create an electronic global marketplace * low-cost transportation - help create global markets global communication networks and global media - create a worldwide culture, and a global market for consumer products
What is technological change?
500
Determinants include; religion, political and economic philosophies, education, language and social structure.
What are the determinants of culture?
500
in the production of a product, a country is more efficient at production than any other country in producing it
What is absolute advantage?