C211 - Global
Economics for
SE
Managers Final
R
Exam - All
U
N
Reading
L
EA
ID
,Base of the pyramid (BOP) - ANSEconomies where people make less than $2,000 per
capita per year.
BRICA - ANSBrazil, Russia, India, and China.
Emerging economies - ANSterm that has gradually replaced the term "developing countries"
since the 1990s.
SE
Emerging markets - ANSA term that is often used interchangeably with "emerging
economies."
Expatriate manager - ANSA manager who works abroad, or "expat" for short.
R
Foreign direct investment (FDI) - ANSInvestment in, controlling, and managing value-added
activities in other countries.
Global Business - U
ANSBusiness around the globe.
Gross national income (GNI) - ANSGDP plus income from non-resident sources abroad.
N
The term used by the World Bank and other international organizations to supersede the term
GNP.
Gross national product (GNP) - ANSGDP plus income from non-resident sources abroad
L
International business (IB) - ANS(1) A business (or firm) that engages in international
EA
(cross-border) economic activities and/or (2) the action of doing business abroad.
International premium - ANSA significant pay raise when working overseas.
Liability of foreignness - ANSThe inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
ID
Multinational enterprise (MNE) - ANSA firm that engages in foreign direct investment (FDI).
Reverse innovation - ANSAn innovation that is adopted first in emerging economies and is
then diffused around the world.
Risk management - ANSThe identification and assessment of risks and the preparation to
minimize the impact of high-risk, unfortunate events.
,Scenario planning - ANSA technique to prepare and plan for multiple scenarios (either high
or low risk).
Purchasing power parity (PPP) - ANSadjustment made to the GDP to reflect differences in
the cost of living
The bottom billion - ANSConcentrated in Africa and Central Asia - 58 small countries, stuck
at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in
interacting with foreign suppliers/partners/competitors/employees - ANSWhy study global
SE
business?
Formal rules - ANSrequirements that treat domestic and foreign firms as equals enhance the
potential odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the
R
chances for foreign entrants
Informal rules - ANScultures, ethics, and norms play an important part in shaping the
Resource-based view -
U
success and failure of firms around the globe
ANSA core perspective. Success and failure of firms is determined
N
by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging between
extremes - ANSWhat are the three views of globalization?
L
"Four Tigers" - ANSHong Kong, Singapore, South Korea and Taiwan
EA
Administrative policy - ANSBureaucratic rules that make it harder to import foreign goods.
antidumping duty - ANSTariffs levied on imports that have been "dumped" (selling below
costs to "unfairly" drive domestic firms out of business).
ID
Balance of Trade - ANSThe aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.
Classical trade theories - ANSThe major theories of international trade that were advanced
before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3)
comparative advantage.
Factor endowment theory - ANSA theory that suggests that nations will develop comparative
advantages based on their locally abundant factors.
, Heckscher-Ohlin theory - ANSAnother name for factor endowment theory
First-mover advantage - ANSAdvantage that first movers enjoy and do not share with late
entrants.
Free trade - ANSThe idea that free market forces should determine how much to trade with
little or no government intervention.
Import - ANSBuying from abroad.
Import tariff - ANSA tax imposed on imports.
SE
Infant industry argument - ANSThe 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.
R
Modern trade theories - ANSThe major theories of international trade that were advanced in
the 20th century, which consist of (1) product life cycle, (2) strategic trade, and (3) national
competitive advantage of industries.
Opportunity cost -
U
ANSCost of pursuing one activity at the expense of another activity, given
the alternatives (other opportunities).
N
Product life cycle theory - ANSA theory that accounts for changes in the patterns of trade
over time by focusing on product life cycles.
L
Protectionism - ANSThe idea that governments should actively protect domestic industries
from imports and vigorously promote exports.
EA
Resource mobility - ANSAssumption that a resource used in producing a product for one
industry can be shifted and put to use in another industry.
Strategic trade policy - ANSGovernment policy that provides companies a strategic
advantage in international trade through subsidies and other supports.
ID
Strategic trade theory - ANSA theory that suggests that strategic intervention by
governments in certain industries can enhance their odds for international success.
Subsidy - ANSGovernment payment to domestic firms.
Tariff barrier - ANSTrade barrier that relies on tariffs to discourage imports.
Theory of absolute advantage - ANSA theory that suggests that under free trade, a nation
gains by specializing in economic activities in which it has an absolute advantage.
Economics for
SE
Managers Final
R
Exam - All
U
N
Reading
L
EA
ID
,Base of the pyramid (BOP) - ANSEconomies where people make less than $2,000 per
capita per year.
BRICA - ANSBrazil, Russia, India, and China.
Emerging economies - ANSterm that has gradually replaced the term "developing countries"
since the 1990s.
SE
Emerging markets - ANSA term that is often used interchangeably with "emerging
economies."
Expatriate manager - ANSA manager who works abroad, or "expat" for short.
R
Foreign direct investment (FDI) - ANSInvestment in, controlling, and managing value-added
activities in other countries.
Global Business - U
ANSBusiness around the globe.
Gross national income (GNI) - ANSGDP plus income from non-resident sources abroad.
N
The term used by the World Bank and other international organizations to supersede the term
GNP.
Gross national product (GNP) - ANSGDP plus income from non-resident sources abroad
L
International business (IB) - ANS(1) A business (or firm) that engages in international
EA
(cross-border) economic activities and/or (2) the action of doing business abroad.
International premium - ANSA significant pay raise when working overseas.
Liability of foreignness - ANSThe inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
ID
Multinational enterprise (MNE) - ANSA firm that engages in foreign direct investment (FDI).
Reverse innovation - ANSAn innovation that is adopted first in emerging economies and is
then diffused around the world.
Risk management - ANSThe identification and assessment of risks and the preparation to
minimize the impact of high-risk, unfortunate events.
,Scenario planning - ANSA technique to prepare and plan for multiple scenarios (either high
or low risk).
Purchasing power parity (PPP) - ANSadjustment made to the GDP to reflect differences in
the cost of living
The bottom billion - ANSConcentrated in Africa and Central Asia - 58 small countries, stuck
at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in
interacting with foreign suppliers/partners/competitors/employees - ANSWhy study global
SE
business?
Formal rules - ANSrequirements that treat domestic and foreign firms as equals enhance the
potential odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the
R
chances for foreign entrants
Informal rules - ANScultures, ethics, and norms play an important part in shaping the
Resource-based view -
U
success and failure of firms around the globe
ANSA core perspective. Success and failure of firms is determined
N
by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging between
extremes - ANSWhat are the three views of globalization?
L
"Four Tigers" - ANSHong Kong, Singapore, South Korea and Taiwan
EA
Administrative policy - ANSBureaucratic rules that make it harder to import foreign goods.
antidumping duty - ANSTariffs levied on imports that have been "dumped" (selling below
costs to "unfairly" drive domestic firms out of business).
ID
Balance of Trade - ANSThe aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.
Classical trade theories - ANSThe major theories of international trade that were advanced
before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3)
comparative advantage.
Factor endowment theory - ANSA theory that suggests that nations will develop comparative
advantages based on their locally abundant factors.
, Heckscher-Ohlin theory - ANSAnother name for factor endowment theory
First-mover advantage - ANSAdvantage that first movers enjoy and do not share with late
entrants.
Free trade - ANSThe idea that free market forces should determine how much to trade with
little or no government intervention.
Import - ANSBuying from abroad.
Import tariff - ANSA tax imposed on imports.
SE
Infant industry argument - ANSThe 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.
R
Modern trade theories - ANSThe major theories of international trade that were advanced in
the 20th century, which consist of (1) product life cycle, (2) strategic trade, and (3) national
competitive advantage of industries.
Opportunity cost -
U
ANSCost of pursuing one activity at the expense of another activity, given
the alternatives (other opportunities).
N
Product life cycle theory - ANSA theory that accounts for changes in the patterns of trade
over time by focusing on product life cycles.
L
Protectionism - ANSThe idea that governments should actively protect domestic industries
from imports and vigorously promote exports.
EA
Resource mobility - ANSAssumption that a resource used in producing a product for one
industry can be shifted and put to use in another industry.
Strategic trade policy - ANSGovernment policy that provides companies a strategic
advantage in international trade through subsidies and other supports.
ID
Strategic trade theory - ANSA theory that suggests that strategic intervention by
governments in certain industries can enhance their odds for international success.
Subsidy - ANSGovernment payment to domestic firms.
Tariff barrier - ANSTrade barrier that relies on tariffs to discourage imports.
Theory of absolute advantage - ANSA theory that suggests that under free trade, a nation
gains by specializing in economic activities in which it has an absolute advantage.
