Base of the pyramid (BOP) Correct ans - Economies where people make less than $2,000 per capita per year.
BRIC Correct ans -
... [Show More] Brazil, Russia, India, and China.
Emerging economies Correct ans - A term that has gradually replaced the term "developing countries" since the 1990s.
Emerging markets Correct ans - A term that is often used interchangeably with "emerging economies."
Expatriate manager Correct ans - A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) Correct ans - Investment in, controlling, and managing value-added activities in other countries.
Global business Correct ans - Business around the globe.
Globalization Correct ans - The close integration of countries and peoples of the world.
Gross domestic product (GDP) Correct ans - The sum of value added by resident firms, households, and governments operating in an economy.
Gross national income (GNI) Correct ans - GDP plus income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP.
Gross national product (GNP) Correct ans - GDP plus income from non-resident sources abroad.
Group of 20 (G-20) Correct ans - The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems.
International business (IB) Correct ans - (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 ans - A significant pay raise when working overseas.
Liability of foreignness Correct ans - The inherent disadvantage that foreign firms experience in host countries because of their non-native status.
Multinational enterprise (MNE) Correct ans - A firm that engages in foreign direct investment (FDI).
Nongovernmental organization (NGO) Correct ans - An organization that is not affiliated with governments.
Purchasing power parity (PPP) Correct ans - A conversion that determines the equivalent amount of goods and services that different currencies can purchase.
Reverse innovation Correct ans - An innovation that is adopted first in emerging economies and is then diffused around the world.
Risk management Correct ans - The identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning Correct ans - A technique to prepare and plan for multiple scenarios (either high or low risk).
Semiglobalization Correct ans - A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely.
Triad Correct ans - North America, Western Europe, and Japan.
Beijing Consensus Correct ans - A view that questions Washington Consensus' belief in the superiority of private ownership over state ownership in economic policy making, which is often associated with the position held by the Chinese government.
Bounded rationality Correct ans - The necessity of making rational decisions in the absence of complete information.
Civil law Correct ans - A legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments.
Cognitive pillar Correct ans - The internalized (or taken-for-granted) values and beliefs that guide individual and firm behavior.
Command economy Correct ans - An economy that is characterized by government ownership and control of factors of production.
Common law Correct ans - A legal tradition that is shaped by precedents and traditions from previous judicial decisions.
Copyright Correct ans - Exclusive legal right of authors and publishers to publish and disseminate their work.
Democracy Correct ans - A political system in which citizens elect representatives to govern the country on their behalf.
Economic system Correct ans - Rules of the game on how a country is governed economically.
Formal institutions Correct ans - Institutions represented by laws, regulations, and rules.
Informal institutions Correct ans - Institutions represented by cultures, ethics, and norms.
Institution-based view Correct ans - A leading perspective in global business that suggests that the success and failure of firms are enabled and constrained by institutions.
Institutional framework Correct ans - Formal and informal institutions governing individual and firm behavior.
Institutional transitions Correct ans - Fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.
Institutions Correct ans - Formal and informal rules of the game.
Intellectual property Correct ans - Intangible property that is the result of intellectual activity.
Intellectual property rights (IPR) Correct ans - Rights associated with the ownership of intellectual property.
Legal system Correct ans - The rules of the game on how a country's laws are enacted and enforced.
Market economy Correct ans - An economy that is characterized by the "invisible hand" of market forces.
Mixed economy Correct ans - An economy that has elements of both a market economy and a command economy.
Moral hazard Correct ans - Recklessness when people and organizations (including firms and governments) do not have to face the full consequences of their actions.
Normative pillar Correct ans - The mechanism through which norms influence individual and firm behavior.
Norms Correct ans - Values, beliefs, and actions of relevant players that influence the focal individuals and firms.
Opportunism Correct ans - The act of seeking self-interest with guile.
Patent Correct ans - Exclusive legal right of inventors of new products or processes to derive income from such inventions.
Piracy Correct ans - Unauthorized use of intellectual property.
Political risk Correct ans - Risk associated with political changes that may negatively impact domestic and foreign firms.
Political system Correct ans - The rules of the game on how a country is governed politically.
Property rights Correct ans - The legal rights to use an economic property (resource) and to derive income and benefits from it.
Regulatory pillar Correct ans - The coercive power of governments.
Sovereign wealth funds (SWFs) Correct ans - A state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets.
State-owned enterprise Correct ans - A firm owned and controlled by the state (government).
Theocratic law Correct ans - A legal system based on religious teachings.
Totalitarianism (dictatorship) Correct ans - A political system in which one person or party exercises absolute political control over the population.
Trademark Correct ans - Exclusive legal right of firms to use specific names, brands, and designs to differentiate their products from others.
Transaction costs Correct ans - The costs associated with economic transactions or, more broadly, the costs of doing business.
Washington Consensus Correct ans - A view centered on the unquestioned belief in the superiority of private ownership over state ownership in economic policy making, which is often spearheaded by two Washington-based international organizations: the International Monetary Fund and the World Bank.
Appreciation Correct ans - An increase in the value of the currency.
Balance of payments Correct ans - A country's international transaction statement, which includes merchandise trade, service trade, and capital movement.
Bandwagon effect Correct ans - The effect of investors moving in the same direction at the same time, like a herd. [Show Less]