Study guide for global business Ch 1. 1.

Outsourcing: Moving a job from a nation to a different nation where the job can be completed for less pay. 2. Major World Organizations: World Bank: (WB) International institution set up to promote general economic development in the worlds poorer nations. International Monetary Fund: (IMF) International institution set up to maintain order in the international monetary system. World Trade Organization: (WTO) is primarily a responsible for policing the world trading system and making sure nation-states adhere to the rules. United Nations: (UN) an international organization made up of 191 countries made to promote peace, security, and cooperation. 3. Drivers of Globalization: Supply and demand, outsourcing, and competition. Change in technology 4. Foreign Direct Investment: (FDI) direct investment in business operations in a foreign country. 5. Category most global markets include? Trade barriers and Tariffs. 6. Trends of FDI: Reduction in tariff cost's and trade barriers. Increasingly globalize economy. 7. How do International trade and output relate? As a countries trade increases or demand so will its output of goods or supply. 8. What happened at the Uruguay Round? Reduced trade barriers; extended the WTO to protect services, manufactured goods, enhanced patent protection, trademarks, and copyrights; and established the WTO before the WTO existed the GATT. Ch 2. 1. What is the engine of growth? The world market and political economy. 2. Components of a political economy? political system, economic system, legal system. 3.Why property rights are important? They safeguard idea's of companies from there competition. 4. What is the TRIPS? TRIPS Agreement is a comprehensive multilateral agreement on intellectual property. 5. What is the HDI? Human Development Index an attempt by the UN to assess the impact of the number of factors on the quality of human life in a country. 6. What is the PPP? Purchasing power parity is an adjustment in gross domestic product per capita to reflect differences in cost o living. 7. Types of Political systems?

Collectivism: for the group. Individualism: for the individual. Communism: for the Party, controlled. Socialism: Heavily government controlled economy. Social Democrats: democratically elected socialism. Democracy: people control government through represenitives, private business with little to no federal control. Totalitarianism: One man or party head of government, absolute control. Theocratic Totalitarian: One party control with church and state. 8. Role of economic Freedom? Market economy becomes a common with supply and demand controlling production. 9. Advantages of private ownership? Ability to control future, choose work forces, how to expand and your product. 10. Role of corruption in business? Hinders business with need to pay off officials. 11. Safeguards in Republic Democracies? The people choose how much power the government may have in such things like economy. 12. 3 Basic risks of business: Economic, Legal, Political. Ch 3. 1.World major religions? Christianity Islam Hinduism Buddhism Confucianism 2. Extra cost from religion? How will working in a Islamic country change costs from a Christian country. 3. Language of business? English Spoken and Unspoken. 4. Who is Hofsted what did he find? A study taking place with IBM employee's across the globe that determined scales for economic expectations when moving into new markets with statistics on power distance, uncertainty avoidance, individualism, masculinity. 5. Social structure Importance? Is critical in the hiring and political process of countries dealing with systems like caste's, classes, and social mobility. 6. What are the values and norms? Values abstract ideas about what a group believes to be good, right, and desirable. Norms social rules and guidelines that prescribe appropriate behavior in particular situations. 7. What is the language of the most people in the world?

Mandarin.

Ch.4 1. Foreign Corrupt Practices Act: (FCPA) a US law regulating behavior regarding the conduct of international business in the taking of unethical actions. 2. Most common offenders of FCPA? 3. How do you hire ethical workers? With the work of ethics officers in your company who specialist in training ethics and watching the 5 causes for ethical business practice. 4. What is a straw men list? Friedman doctrine Cultural relativism Righteous moralist Nave moralist 5. What is moral courage/ compos? A set of morals a worker has and how they will react to a infringement of those morals by a fellow employee, example bribery. 6. What are determinates of ethical behavior? personal ethics organizational culture unrealistic performance expectations leadership Decision making process 7. what is a naive moralist? the belief that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either. 8. What is the Freemen Doctrine? A straw man theory that says the only social responsibility a company has is to make profits without breaking the law, committing deception, or fraud. 9. What is culture relativism? Belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate. 10. Tragedy of the commons? Unethical exploration of the poor. 11. What is the ethical strategy? To run a company effectively and ethically.