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Side ASide B
World Trade Organization
like GATT, primary responsibility is policing the world trading system and making sure nation-states...
International Monetary Fund
Created in Bretton Woods, New Hampshire, established to maintain order in the international...
set up to promote economic development… more political
occurs when a firm exports goods or services to consumers in another country
occurs when a firm invests resources in business activities outside its home country
predicts that the power of microprocessor technology doubles and its cost of production falls...
any business that has productive activities in two or more countries
Stock of foreign direct investment
total cumulative value of FDI
as business activity transcended national borders… institutions were needed to help manage,...
used to stress that the political, economic, and legal systems of a country are interdependent
state ownership of the means of production, distribution, and exchange and fully compensated...
achieve socialism through democratic means
selling state owned enterprises to private investors
form of government in which one person or political party excercises absolute control over...
most common form of totalitarianism
found in states where political power is monopolized by a party, group, or individual that...
Political party that represents the interests of a particular tribe monopolizes power
Right- wing Totalitartianism
permits some individual economic freedom but restricts individual political freedom aka. Fascism...
All productive activities are privately owned and production is determined by supply and demand
Government plans the goods and services that a country produces, the quantity in which they...
a country refers to the rules, or laws that regulate behavior along with the processes by which...
Based on tradition, precedent, and custom
Civil Law System
Based on a detailed set of laws organized into codes
Theocratic law system
one in which the law is based on religious teachings
the body of law that governs contract enforcement
Common law contracts
very detailed contingencies due to the fact that common law tends to be ill specified
established uniform set of rules governing certain aspects of the making and performance of...
Violation of these right happen in two different ways
Private action- theft, piracy, blackmail by private individuals
Foreign Corruptions Act
Makes it illegal to bribe a foreign government official to obtain or maintain business over...
grants the inventor of a new product or process exclusive rights for a defined period to the...
the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish...
abstract ideas about what a group believes to be good, right, and desirable
designs and names, often officially registered, by which merchants or manufacturers designate...
World Intellectual property organization
signed a treaty to protect intellectual property
used as a yardstick to measure economic activity
Purchasing Power Parity
it allows for a more direct comparison of living standards in different countries…. Based...
involves removing legal restrictions to the free play of markets , the establishment of private...
the social rules and guidelines that prescribe appropriate behavior in particular situations
Group of people who share a common set of values and norms
routine conventions of everyday life
norms that are seen as central to the functioning of a society and to its social life
First degree social structure
individual as opposed to the group
Second degree social structure
society is stratified into classes or castes
societies that are stratified on a hierarchical basis into social categories
an association of two or more individuals who have a shared sense of identity and who interact...
refers to the extent to which individuals can move out of the strata into which they are born
is a closed system of stratification in which social position is determined by the family into...
a less rigid form of social stratification in which social mobility is possible
refers to a condition where people tend to perceive themselves in terms of their class background,...
refer to a set of moral principles or values, that are used to guide and shape behavior
Dimension focused on how a society deals with the fact that peiople are unequal in physical...
dimension measured the extent ot which different cultures socialized their members into accepting...
Businesses from parent companies operating in foreign countries should do everything they can...
Tragedy of commons
when individuals overuse a resource held in common by all, but owned by no one, resulting in...
Foreign Corrupt Practices Act
Outlawed the paying of bribes to foreign government officials to gain business
give something back to the societies that have made their success possible
situations in which none of the available alternatives seems ethically acceptable
Cause of unethical behavior
pressure from the parent company to meet unrealistic goals that managers can attain only by...
says company can increase profits if they stay within the boundaries of the law… but laws...
ethics are nothing more than the reflection of a culture
belief that a multinational’s home country standards of ethics are the appropriate ones for...
Belief that if a manager of a multinational sees that firms from other nations are not following...
Utilitarian approach to ethics
hold that the moral worth of actions or practices is determined by their consequences
hold that people should be treated as ends and never purely as means to the ends of others
recognize that human beings have fundamental rights and privileges that transcend national...
the main tenet of mercantilism was that it was in a country’s best interests to maintain...
Flaw of Mercantilism
it viewed trade as a zero- sum game
wrote wealth of nations to attack mercantilism
the production of a product when it is more efficient that nay other country in producing it
David Ricardo states it makes sense for a country to specialize in the production of those...
Refers to the extent to which a country is endowed with such resources as land, labor, and...
predicts that countries will export those goods that make intensive use of factors that are...
Product-Life Cycle theory
by Raymond Vernon, based on the observation that for most of the twentieth century a large...
levied as a fixed charge for each unit of good imported
levied as a proportion of the value of an imported good
government payment to a domestic producer
direct restriction on some good that may be imported into the country
Tariff rate quota
lower tariff rate is applied to imports within the quota
Voluntary export restraint
quota on trade imposed by exporting country typically at the request of the importing government
extra profit producers make when supplies are artificially limited by an import quota
Primary reason for government intervention
Infant industry argument
government should support new industries until they have grown strong enough to meet international...
Strategic trade policy
government can raise national income if it can somehow ensure that the firm or firms that gain...
having high levels of subsidies to protect domestic industries