International Business Midterm (Ch 1-8) Rated A+

International Business Midterm (Ch 1-8) Rated A+ globalization the shift towards a more integrated and inter-depended world economy Globalization is occurring in 2 parts: 1) Globalization of markets 2) globalization of products General Agreement on Tariffs and Trade (GAFF) a trade agreement between the Allied nations after WWII World Trade Organization (WTO) the world forum for international trade International Monetary Fund (IMF) International institution that provides loans to countries with payment problems (can't pay bills) Created to help finance countries for globalization World Bank International institution that provide loans to grow economies United Nations International institution that was created to preserve peace and reduce conflict between trading nations. (They agree to seek peace first) International Business a business that engages in international trade or investment in more than 1 country Multinational Enterprises a business that has production activities in more than 1 country political system a system of government in action 4 types of political systems 1) Individualism 2) Collectivism 3) Democracy 4) Totalitarianism 3 types of economies 1) market economy 2) command economy 3) mixed economy legal system a system of rules and laws that regulate behavior and provides a process of grievances 3 types laws that exist within legal systems 1) common law 2) civil law 3) theocratic law Contracts for the International Sale of Goods (CIGS) uniform set of rules that governs commercial contract between different nations 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 Property rights can be violated in 2 ways 1) private action 2) public action Foreign Corrupt Practices Act a law that prohibits bribing a foreign government official or maintain a business advantage over which that foreign official has authority (1970s) Intellectual property property that is the product of intellectual activity patents grants the inventor of a new product or process exclusive rights for a defined period of time, usually 20 years copyrights the exclusive right to publish