Global Business Chapter 4

Economic Development

Increase in the economic well-being, quality of life, and general welfare of a nation's people.

Develop Country

Country that is highly industrialized and highly efficient, and whose people enjoy a high quality of life.

Newly Industrialized Country (NIC)

Country that has recently increased the portion of its national production and exports derived from industrial operations.

Emerging Markets

Newly industrialized countries plus those with the potential to become newly industrialized.

Developing Country

Nation that has poor infrastructure and extremely low personal incomes. Also called less developed countries.

Technological Dualism

Use of the latest technologies in some sectors of the economy coupled with the use of outdated technologies.

Purchasing Power

Value of goods and services that can be purchased with one unit of a country's currency.

Purchasing Power Parity

Relative ability of two countries' currencies to buy the same "basket" of goods in those two countries.

Human Development Index (HDI)

Measure of the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living.

Economic Transition

Process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Political Risk

Likelihood that a society will undergo political change that negatively affects local business activity.

Confiscation

Forced transfer of assets from a company to the government without compensation.

Expropriation

Forced transfer of assets from a company to the government with compensation.

Nationalization

Government takeover of an entire industry.

Local Content Requirements

Laws stipulating that a specified amount of a good or service be supplied by producers in the domestic market.

Lobbying

Policy of hiring people to represent a company's view on political matters.

Foreign Corrupt Practices act

Law that forbids U.S. companies from (Corrupting) bribing government officials or political candidates in other nations.