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globalism
global competition characterized by networks of international linkages that bind countries, institutions, and people in a interdependent global economy TERM 2
Three regional free trade blocs
DEFINITION 2 Western Europe, Asia, and the Americas TERM 3
Multinational
Corporation
DEFINITION 3 A corporation that engages in production or service of activities through its own affiliates in several countries, maintains control over the policies of those affiliates, and managers from a global persepctive TERM 4
macropolitical risk
DEFINITION 4 an event that effects all the foreign firms doing business in a country or region TERM 5
micropolitical risk
DEFINITION 5 an event that affects one industry or company or only a few companies
Political
Risks
any governmental action or politically motivated event that could adversely affect the long-run profitability or value of a firm TERM 7
Nationalization
DEFINITION 7 refers to forced sale of an MNC's assests to local buyers, with some compensation to the firm, perhaps leaving a minority ownership with the MNC. TERM 8
Expropriation
DEFINITION 8 occurs when local government seizes and provides inadequate compensation for the foreign-owned assets of an MNC TERM 9
Common law
DEFINITION 9 used in the United States and 26 other countries of English origin or influence, past court decisions act as precedents to the interpretation of the law and to common custom TERM 10
civil law
DEFINITION 10 based on a comprehensive set of laws organized into a code
The qualitative approach
evaluates a country's economic risk by assessing the competence of its leaders and analyzing the types of policies they are likely to implement TERM 17
The quantitative approach
DEFINITION 17 statistically measuring a countrys ability to honor its debt; measure is arrived at by weighting economic variables to create an index of a countrys creditworthiness over time and to make comparisons with other countries TERM 18
checklist approach
DEFINITION 18 relying on easily measurable and timely indicators of creditworthiness. TERM 19
Corporate Social Responsibility
DEFINITION 19 concerns the benefits versus harm wrought by MNCs, especially in less developed countries (LDCs) TERM 20
Ethnocentric
DEFINITION 20 a company applies the morality used in the home countryregardless of the host countrys system of ethics
Ethical relativism
the company adopts the local moral code of whatever country in which it is operating. TERM 22
Moral Universalism
DEFINITION 22 the need for a moral standard that is accepted by all cultures TERM 23
The Sweatshop Code of
Conduct
DEFINITION 23 a ban on forced labor, abuse, and discrimination, requires companies to provide a healthy and safe work environment, and requires companies to pay at least the local prevailing minimum wage TERM 24
The Electronic Industry Code of Conduct
(EICC)
DEFINITION 24 bans forced and child labor and excessive overtime, includes basic environmental requirements, and requires audits of overseas suppliers TERM 25
China's Economic
Status
DEFINITION 25 is very attractive to foreign manufacturers and other firms. Its now the worlds third largest manufacturer after the US and Japan. Growth in higher-skilled jobs is occurring as well
Collectivism
entails tight social frameworks, emotional dependence on the organization, and strong belief in group decisions TERM 32
Communication
DEFINITION 32 process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts TERM 33
noise
DEFINITION 33 anything that serves to undermine the communication of the intended meaning TERM 34
Cultural noise
DEFINITION 34 the cultural variables that undermine the communications of intended meaning TERM 35
Attribution
DEFINITION 35 process in which people look for an explanation of another person's behavior
Appropriability
ability of an innovating firm to protect its technology from competitors and to obtain economic benefits from that technology TERM 37
Kinesic behavior
DEFINITION 37 is communication through body movemente.g., posture, gestures, facial expressions and eye contact TERM 38
Proxemics
DEFINITION 38 concern the influence of proximity and space on communication (e.g., in terms of personal space and in terms of office layout) TERM 39
Paralanguage
DEFINITION 39 refers to how something is said, rather than the content of what is saide.g., rate of speech, tone and inflection of voice, other noises, laughing, yawning, and silence TERM 40
Foreign Direct Investment
DEFINITION 40 Long term participation by country A into country B; Americans becoming more sensitive to what they perceive as a lack of control over their own
