Globalization
the shift toward a more integrated and interdependent world economy
Reshoring
moves jobs back from foreign to domestic locations
Global Citizen
someone who identifies with being part of an emerging world community and whose actions contribute to building this community's values and practices
Foreign Direct Investment (FDI)
Investment made by a foreign company in the economy of another country.
G7
Group of seven leading industrial countries: Canada, France, Germany, Italy, Japan, United Kingdom, United States
Political Economy of a Nation
how the political, economic, and legal systems of a country are interdependent
Market Economies
all productive activities are privately owned and production is determined by the interaction of supply and demand
-goes hand-in-hand with democracies
Command Economies
The government largely determines what goods and services are produced, who gets them, and how the economy will grow.
-goes hand-in-hand with totalitarian regimes
mixed economies
certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning
-Gov tends to own firms that are considered important to national security
Common Law
based on tradition, precedent, and custom
Civil Law
based on detailed set of laws organized into codes
Theocratic Law
law is based on religious teachings
-Ex. Sharia banking
Gross Domestic Product
monetary value of all final goods, services, and structures produced within a country's national borders during a one-year period
Gross National Income (GNI)
The total annual income received by residents of a nation
Purchasing Power Parity (PPP)
The amount of money needed in one country to purchase the same goods and services in another country
Gini Coefficient
A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income.
Human Development Index (HDI)
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
Property Rights
the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource
Culture
a system of knowledge, beliefs, patterns of behavior, artifacts, and institutions that are created, learned, and shared by a group of people
Cross-cultural Literacy
an understanding of how cultural differences across and within nations can affect the way in which business is practiced
cultural intelligence
The capability to relate and work effectively across cultures
Hofstedes Four Cultural Dimensions
-Power Distance
-Uncertainty Avoidance
-Individualism/Collectivism
-Masculinity/Femininity