Base of the pyramid (BOP) - correct answer - Economies where people make less than $2,000 per capita per year.
BRICA - correct answer - Brazil, Russia,
... [Show More] India, and China.
Emerging economies - correct answer - term that has gradually replaced the term "developing countries" since the 1990s.
Emerging markets - correct answer - A term that is often used interchangeably with "emerging economies."
Expatriate manager - correct answer - A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) - correct answer - Investment in, controlling, and managing value-added activities in other countries.
Global Business - correct answer - Business around the globe.
Gross national income (GNI) - correct answer - GDP plus income from non-resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP.
Gross national product (GNP) - correct answer - GDP plus income from non-resident sources abroad
International business (IB) - correct answer - (1) A business (or firm) that engages in international (cross-border) economic activities and/or (2) the action of doing business abroad.
International premium - correct answer - A significant pay raise when working overseas.
Liability of foreignness - correct answer - The inherent disadvantage that foreign firms experience in host countries because of their non-native status.
Multinational enterprise (MNE) - correct answer - A firm that engages in foreign direct investment (FDI).
Reverse innovation - correct answer - An innovation that is adopted first in emerging economies and is then diffused around the world.
Risk management - correct answer - The identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning - correct answer - A technique to prepare and plan for multiple scenarios (either high or low risk).
Purchasing power parity (PPP) - correct answer - adjustment made to the GDP to reflect differences in the cost of living
The bottom billion - correct answer - Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees - correct answer - Why study global business?
Formal rules - correct answer - requirements that treat domestic and foreign firms as equals enhance the potential odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants
Informal rules - correct answer - cultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe
Resource-based view - correct answer - A core perspective. Success and failure of firms is determined by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging between extremes - correct answer - What are the three views of globalization?
"Four Tigers" - correct answer - Hong Kong, Singapore, South Korea and Taiwan
Administrative policy - correct answer - Bureaucratic rules that make it harder to import foreign goods.
antidumping duty - correct answer - Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic firms out of business).
Balance of Trade - correct answer - The aggregation of importing and exporting that leads to the country-level trade surplus or deficit.
Classical trade theories - correct answer - The major theories of international trade that were advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage.
Factor endowment theory - correct answer - A theory that suggests that nations will develop comparative advantages based on their locally abundant factors.
Heckscher-Ohlin theory - correct answer - Another name for factor endowment theory
First-mover advantage - correct answer - Advantage that first movers enjoy and do not share with late entrants.
Free trade - correct answer - The idea that free market forces should determine how much to trade with little or no government intervention.
Import - correct answer - Buying from abroad.
Import tariff - correct answer - A tax imposed on imports.
Infant industry argument - correct answer - The argument that if domestic firms are as young as "infants," in the absence of government intervention, they stand no chances of surviving and will be crushed by mature foreign rivals.
Modern trade theories - correct answer - The major theories of international trade that were advanced in the 20th century, which consist of (1) product life cycle, (2) strategic trade, and (3) national competitive advantage of industries.
Opportunity cost - correct answer - Cost of pursuing one activity at the expense of another activity, given the alternatives (other opportunities).
Product life cycle theory - correct answer - A theory that accounts for changes in the patterns of trade over time by focusing on product life cycles.
Protectionism - correct answer - The idea that governments should actively protect domestic industries from imports and vigorously promote exports.
Resource mobility - correct answer - Assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry.
Strategic trade policy - correct answer - Government policy that provides companies a strategic advantage in international trade through subsidies and other supports.
Strategic trade theory - correct answer - A theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success.
Subsidy - correct answer - Government payment to domestic firms.
Tariff barrier - correct answer - Trade barrier that relies on tariffs to discourage imports.
Theory of absolute advantage - correct answer - A theory that suggests that under free trade, a nation gains by specializing in economic activities in which it has an absolute advantage.
Theory of comparative advantage - correct answer - A theory that focuses on the relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations.
Theory of mercantilism - correct answer - A theory that suggests that the wealth of the world is fixed and that a nation that exports more and imports less will be richer.
Trade deficit - correct answer - An economic condition in which a nation imports more than it exports.
Trade surplus - correct answer - An economic condition in which a nation exports more than it imports.
Agglomeration - correct answer - Clustering of economic activities in certain locations.
Bargaining power - correct answer - Ability to extract favorable outcome from negotiations due to one party's strengths.
Demonstration (contagion or imitation) effect - correct answer - The reaction of local firms to rise to the challenge demonstrated by MNEs through learning and imitation.
Downstream vertical FDI - correct answer - A type of vertical FDI in which a firm engages in a downstream stage of the value chain in a host country.
Foreign portfolio investment (FPI) - correct answer - Investment in a portfolio of foreign securities such as stocks and bonds.
Free market view on FDI - correct answer - A political view that suggests that FDI unrestricted by government intervention is the best.
Horizontal FDI - correct answer - A type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.
Intrafirm trade - correct answer - International transactions between two subsidiaries in two countries controlled by the same MNE.
Management control rights - correct answer - The rights to appoint key managers and establish control mechanisms.
Obsolescing bargain - correct answer - The deal struck by MNEs and host governments, which change their requirements after the initial FDI entry.
Pragmatic nationalism on FDI - correct answer - A political view that only approves FDI when its benefits outweigh its costs.
Radical view on FDI - correct answer - A political view that is hostile to FDI.
Sunk cost - correct answer - Cost that a firm has to endure even when its investment turns out to be unsatisfactory
Upstream vertical FDI - correct answer - A type of vertical FDI in which a firm engages in an upstream stage of the value chain in a host country.
Vertical FDI - correct answer - A type of FDI in which a firm moves upstream or downstream at different value chain stages in a host country.
Antitrust law - correct answer - Law that outlaws cartels (trusts).
Antitrust policy - correct answer - Government policy designed to combat monopolies and cartels.
Attack - correct answer - An initial set of actions to gain competitive advantage.
Blue ocean strategy - correct answer - Strategy that focuses on developing new markets ("blue ocean") and avoids attacking core markets defended by rivals, which is likely to result in a bloody price war or a "red ocean."
Capacity to punish - correct answer - Sufficient resources possessed by a price leader to deter and combat defection.
Competition policy - correct answer - Government policy governing the rules of the game in competition.
Competitive dynamics - correct answer - Actions and responses undertaken by competing firms.
Competitor analysis - correct answer - The process of anticipating rivals' actions in order to both revise a firm's plan and prepare to deal with rivals' response.
Concentration ratio - correct answer - The percentage of total industry sales accounted for by the top four, eight, or twenty firms.
Counterattack - correct answer - A set of actions in response to attack. [Show Less]