Chapter 1- notes on globalizing business

Chapter 1- notes on globalizing business - Chapter 1 notes...

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Chapter 1: notes on globalizing business CH.1 Terms International business - a business or firm that engages in international (cross-boarder) economic activities or the action of doing business abroad. Multinational Enterprise (MNE) - a firm that engages in foreign direct investment and operates in multiple countries. Foreign Direct Investment - investment in, controlling, and managing value-added activities in other countries. Global Business - business around the globe, including both international (cross- border) activities and domestic business activities. Emerging Economy (emerging market)- a developing country. Group of 20 (G20) - the group of 19 major countries plus the European Union (EU) whose leaders meet on a regular basis to solve global economic problems. Gross Domestic Product (GDP)- the sum of value added by resident firms, households, and governments operating in an economy. Purchasing Power Parity - a conversion that determines the equivalent amount of goods and services different currencies can purchase. This conversion is usually used to capture the differences in cost of living in different countries. Triad - Three regions of developed economies (North America, Western Europe, Japan). Base of the Pyramid - The vast majority of humanity, about 4 billion people, who make less than $2,000 a year. Expatriate Manager (expat) - A manager who works outside his or her native country. International Premium - a significant pay raise commanded by expatriates when working overseas. Institution-based view - a leading perspective in global business that suggests that firm performance is, at least in part, determined by the institutional frameworks governing firm behavior around the world. Institutions - formal and informal rules of the game. Institutional framework - formal and informal institutions that govern individual and firm behavior.
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