IBE - Keywords

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• increase in global market independency globalization
• What types of globalization exist? globalization of markets and production
• Global institutions that manage and regulate the global market place. Promotes multinational treaties (W, I, W, U) WTO, IMF, Word bank, UN
• A business that owns operations in more than one country Multinational Enterprise
• The cost of producing a microprocessor falls every 18 months, power doubles. What is this law called? Moores Law
• Name a few factors of production: (l, m, l, c t) Labor, Management, Land, Capital, Technology
• The sale of state-owned enterprise to private investments Privatization
• A political system that emphasizes the collective goals insted of the individual collectivism
• Emphasizes the individual goals, freedom and expressions individualism
• an economy in which supply and demand determines the quantity goods and services produced Market Economy
• an economy in which the quantity and type of goods produced is controlled by the government command economy
• Political system based on tradition, precedent and costume Common Law
• A system of law based on a very detailed set of written laws and codes Civili law
• System of law based on religion Theocratic law
• Organization that copes with contract-disputes. UN formed this set of rules governing the aspect of making performance of commercial contract between seller and buyers (CISG) Contract for the international sale of gods
• Framework that uses 6 factors to analyze and monitor the macro-environmental factors that may have a profound impact on an organization’s performance PESTEL
• Ways to protect Intellectual and regular Property (P, C, T) Patent, Copyright, Trademark
• Different ways to measure a countries economic growth and development (GNI, PPP, HDI, GDP) Gross National Income, Purchasing Power Parity, Human Development Index, Gross Domestic Product
• Removal of government restrictions concerning the conduct of a business Deregulation
• The 3 different risks that comes with doing business internationally (P, E, L) Political, Economic, Legal
• Understanding how the culture of a country affects the way business is practiced there. Cross-Cultural Literacy
• The absence of barriers to free flow of goods and services between countries Free Trade
• An economic philosophy advocating that countries should export and discourage imports Mercantilism
• Economic gain results in economic loss in another country Zero Sum game
• Adam Smiths theory is called: Absolute Advantage which means that a country produces a product more efficient and should focus on that one
• Adam Smiths theory does not take into account ... transportation costs
• Difference between Absolute Advantage and Comparative Advantages is to to produce goods and services at a lower opportunity cost
• A countries endowment with resources such as land, labor and capital Factor Endowments
• Cost advantages associated with large-scale production Economies of scale
• Economies of Scale: cost per unit is = to the size of industry not size of any one firm with perfect competition External
• Economies of Scale: cost per unit is = to the size of an individual firm not size of any one industry with perfect competition Internal
• No producer has the advantage of influencing the price or market Perfect Competition
• When perfect competition does not occur Imperfect Competition
• Imperfect Competition: only one seller of a good or service monopoly
• Imperfect Competition: a small number of seller that control the market oligopoly
• Imperfect Competition: there are many sellers producing highly Monopolistic competition
• Imperfect Competition: only one buyer of a good monopsony
• Imperfect Competition: small number of buyers oligopsony
• The model that shows how trade leads to: lower price average, production differentiation and intra-industry trade Monopolistic competition model
• The industry trade that reflects comparative advantage Inter-industry trade
• Two policies that influences the economy of a nation (M and F) Monetary and Fiscal Policy
• Instruments of Trade Policy: a tax on imports/exports tariff
• Instruments of Trade Policy: government payment to a domestic producer (to keep prices low or jobs) subsidy
• Instruments of Trade Policy: direct restriction on the quantity of some good that may be imported import quota
• Instruments of Trade Policy: a lower tax rate is applied to imports within that category than those over it tariff rate quota
• Instruments of Trade Policy: a quota on trade imposed by the exporting country, typically at the request importing countries government Voluntary export restraint
• Instruments of Trade Policy: Bureaucratic rules designed to make it difficult for imports to enter a country administrative trade policies
• Instruments of Trade Policy: Punish foreign firms that engage in dumping Antidumping policies

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