BA 310 Midterm

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Terms in this set (...)

Emerging economies
Developing countries that over the past two or three decades have begun to develop a strong industrial base, such as Singapore and Hong Kong
Decoupling
A fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic strengths rather than the ups and downs of the world's richest countries
Multipolar world
A world economy in which the engines of growth are comprised of both industrialized (e.g., the United States) and emerging market economies (e.g., BRIC countries)
International monetary system
The system of exchange rates and international payments that enables countries and their citizens to purchase goods and services from one other
What does the IMF do?
Provide a forum for cooperation on international monetary problems

Facilitate the sustainable growth of international trade

Promote exchange rate stability and an open system of international payments

Lend countries foreign exchange when needed
What does the WTO do?
Administers trade agreements

Acts as a forum for trade negotiations

Settles trade disputes

Reviews national trade policies
Institutions
The rules, enforcement mechanisms, and organizations that support market transactions
Adaptive institutions
Government organizations that create strong incentives for private investment and operate under a system of checks and balances
Antitrust laws
National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms
Acculturation
The ability of a firm to adjust to a culture different from its own
Values
Basic beliefs or philosophies that are pervasive in a society
Attitudes
Feelings or opinions influenced by our beliefs
Manners and customs
The way a society does things
Power distance
The level of egalitarianism (equality) in a society
Masculine vs. Feminine
The extent to which a society minimizes gender inequality
Uncertainty avoidance
The extent to which societies tolerate risk or are risk averse
Time orientation
The extent to which a society emphasizes short-run or long-run time horizons. Ex: Japan is willing to wait years to make a profit when people in the U.S. want to make a profit in a year or less
Universalism vs. Particularism
The importance of rules versus relationships. Ex: Should the passenger admit to police that the friend was speeding (rules) or say that the driver was not (relationship)?
Neutral vs. Emotional
The extent to which a society expresses itself emotionally
Specific vs. Diffuse
The degree to which a society compartmentalizes roles. Ex: Are women who work and have children depicted in both roles, mother and manager, or in one, mother?
Achievement vs. Ascription
How rewards in a society are handed out: performance vs. place in society
GLOBE
Involved surveying thousands of business executives from 61 different countries about nine cultural dimensions
Gannon's Cultural Metaphors
Gauge a specific culture by using an image ("metaphor") that depicts how people in a specific culture think and behave. Ex: French wine - Purity; classification; composition; compatibility; maturation
Business in Japan
Japanese business has a group orientation, rather than an individualistic one

Like to take advantage of jet lag

It is important for your Japanese hosts to know your title and rank. They prefer to do business with high-ranking individuals
Business in Korea
Older generations are respected for their knowledge and wisdom. Gray hair is viewed positively

"We" is more important than "I"

"Inwa" involves harmony among unequals: loyalty is owed to parents and authority figures, yet superiors are responsible for the well-being of their subordinates