Chapter 1
Exporting -Goods and services sold abroad and sent out of the country
Importing -Goods and services purchased abroad and brought into a country
Globalization - Trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies
Pros- Reduces marketing costs by standardizing the marketing activity, Creates new market opportunities, levels uneven income streams( products that are universal but seasonal can use international sal es to level its income stream)
Local buyer needs ( In India beef is taboo, so they use all mutton patties instead of the usual beef patties.)
Global Sustainability …Sustainability- development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Emerging Markets - These markets, around 2 billion people, are racing to catch up to developed nations. The population is migrating to cities for better pay and is overloading cities infrastructure. Rising incomes are increasing global demand for resources and basic products . / BRICS
Traditional Markets- Globalization has bypassed these markets, nearly 4 billion people. The population is mostly rural, the infrastructure is very poor, and there is little credit or collateral. People have almost no legal protections, and corruption prevails.
GATT - (General Agreement on Tariffs and Trade) Treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade ./ has 23 nations
WTO - (World Trade Organization) International organization that enforces the rules of international trade
Chapter 2
Hofsteade Framework - Individualism vs collectivism , Power Distance ( Large= Hierarc hical and Small= less informal), Uncertainty Avoidance ( Avoid high risk, Greece is high risk, USA is low risk), Long term orientation (USA is low, Japan is high[50 year plans]
Cultural Imperialism - Replacement of one culture's traditions, folk heros , and artifacts with substitutes from another. (USA is practicing this by moving firms into untapped markets and changing the culture)
Religions impacts on business - Christianity organizations sometimes get involved in social causes that affect business policy.
Islam - this religion strongly affects the kinds of goods and services acceptable to Muslim consumers. Coffee and tea are a large market in Islamic countries because the religious law doesn't allowed consumption of alcohol
Hinduism - disdain materialism doesn't eat cow because it is sacred. McDonalds changed their menu to fit accordingly.
Chapter 3
Pluralism -This lies between totalitarianism and anarchism. The belief that both private and public groups play important roles in nation political activities. This includes democracies, constitutional monarchies, and some aristocracies . ( democracy)
Totalitarianism - The belief that every aspect of people's lives must be controlled for a nations political system to be effective. This included communism and fascism
Nazi Germany under Hitler and USSR under Stalin are examples. Today North Korea is the most prominent example. 3 features totalitarian gov't tend to share 1.Imposed Authority 2. Lack of constitutional guarantees 3. Restricted Participation
Theocratic Totalitarianism - under control of religious leaders
Secular Totalitarianism - under control of bureaucratic leaders
Right wing ( capitalism)
Pure Democracy = Switzerland and Representative=USA
Legal system - Common =flexible and very general (USA)
Civil = not flexible and very detailed (Western Europe)
Theocratic =Religious 1. Islamic 2. Jewish 3. Hindu
Ethics - Friedman = only job is to increase profit. Rightous =Universal truths. Cultural relativis t= "when in Rome do as the Romans". Utilitarian = good out ways bad
Chapter 4- Central =Gov't owns most business( Collectivism) (communist) Mixed = Gov't and private parties share ownership of business.(Socialism)(Europe) Market = Private parties own most business(USA) Privatization - Policy of selling gov't owned economic resources to private operators
Laissez Faire - Allow them do to without interference/ less gov't
There are 3 main types of economic systems. Centrally planned, Mixed, and Market economy each have a certain way of doing things. In a Centrally Planned Economy the government owns almost everything. They make a majority of all economy related decisions. They make the prices for everything and there is little too no individual freedom. This type of economic system can be seen is Cuba and North Korea. Also is not a very good system, because it doesn't give anybody desire to achieve, and they also failed