WGU C211: Global Economics for Managers Cengage Text Graded A+

WGU C211: Global Economics for Managers Cengage Text Graded A+ Globalization The close integration of countries and peoples of the world. Purchasing Power Parity (PPP) A conversion that determines the equivalent amount of goods and services that different currencies can purchase. Scenario Planning A technique to prepare and plan for multiple scenarios (either high or low risk). Risk management The identification and assessment of risks and the preparation to minimize the impact of high-risk , unfortunate events. Gross National Income (GNI) GDP + income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP. Gross National Product (GNP) GDP + income from non-resident sources abroad. reverse innovation An innovation that is adopted first in emerging economies and is then diffused around the world. International Business (IB) (1) A business or firm that engages in international crossborder economic activities and/or (2) the action of doing business abroad. semiglobalization A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. BRIC Brazil, Russia, India, and Chinabase of the pyramid (BOP) Economies where people make less than $2,000 per capita per year. emerging economies A term that has gradually replaced the term "developing countries" since the 1990's. emerging markets A term that is often used interchangeably with "emerging economies" nongovernmental organizations (NGO's) An organization that is not affiliated with governments. Expatriate Manager A manager who works "abroad", or "expat" for short. Gross Domestic Product (GDP) The sum of value added by resident firms, households, and governments Foreign Direct Investment (FDI) Investment in, controlling, and managing value-added activities in other countries. Group of 20 (G-20) The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems. liability of foreignness The inherent disadvantage that foreign firms experience in host countries because of their non-native status. global business Business around the globe. international premium A significant pay raise when working national enterprise (MNE) A firm that engages in foreign direct investment (FDI) Triad North America, Western Europe, and Japan Expatriate Manager (expat) A manager who works abroad, or "expat" for short. Nontariff Barriers (NTB) Trade barrier that relies on nontariff means to discourage imports. tariff barrier Trade barrier that relies on tariffs to discourage imports. deadweight costs Net losses that occur in an economy as a result of tariffs. free trade The idea that free market forces should determine how much trade with little or no government intervention. infant industry argument The argument that if domestic firms are as young as "infants", in the absence of government intervention, they stand no chances of surviving and will be crushed by mature foreign rivals. product life cycle theory A theory that accounts for changes in the patterns of trade over time by focusing on product life cycles. theory of mercantilism A theory that suggests that the wealth of the world is fixed and that a nation that exports more than imports less will be richer. theory of comparative advantage A theory that focusses on the relative not the absolute advantage in one economic activity that one nation enjoys in comparison with other egic trade theory A theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success. merchandise (goods) Tangible products being traded. services Intangible services being traded. trade deficit An economic condition in which a nation imports more than it exports. factor endowments The extent to which different countries possess various factors of production such as labor, land and technology. classical trade theories The major theories of international trade that were advanced before th