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32 Cards in this Set

  • Front
  • Back
What are business motives to go global?
To expand income base and To expand source options (e.g. labor, energy, land, and capital)
What are key issues surrounding globalization?
Labor, Environment, National Sovereignty, World's Poor, Debt Relief Movement, WTO Doha round
What the issues surrounding labor in globalization?
Wealth distribution, technology, and unskilled labor
What are the key issues surrounding in Globalization?
Noise and CO2
What is the issue surrounding WTO Doha round?
food subsides by rich nations
Political Economy is a vision combined by...
political system, economical system, legal system
Common Law
based upon tradition, precedence, and custom
Civil Law
based on detailed legal codes
Theocratic Law
based on religious teachings
Under Common Law, contract tends to be
detailed with all contingencies being spelled out
Under Civil Law, contract tends to be
be short and simple because issues are already covered by civil codes
In the christian countries one sees...
stoic discipline, hard working, humble in consumption and pleasure
In Islamic countries one sees...
critical of earning profit through exploitation of others
In Hinduism one sees...
spiritual progression, caste
In Buddhism one sees...
the way of life, spiritual perfection
In Confucianism one sees...
Loyalty, Reciprocal obligation, Honesty
Social responsibility of business
means that business should take the social consequences and business decisions should presume that they have both good economic and good social consequences
nation wealth depends on accumulated treasures.
Absolute advantage
producing goods at lower cost than others
Comparative advantage
producing goods more efficiently than others.
International Product Life Cycle
matured productions change locations to lower costs
Factor Endowment
Import things that are scarce and export things that are abundant
National Competitive Advantage
Government policies to compete in the global industries. (Silicon Valley)
What the interconnected diamond of porter's theory of National Comparative Advantage?
Firm Strategy Structure, Demand Condition, Related Supporting industries, Factor Endowments
Location =
First Mover =
economies of scale
Policy implications in trade
lobbying gov. helps make the diamond factors more favorable
quota given by import licenses
product costs, fair market value
What are the forms of investments?
exporting, licensing, Greenfield investment, acquisition
Law of one price
a price of a product in one country must be the same price converted in another country
PPP theory
a price of a “basket of goods” should be roughly equivalent in each country