Global Business- Chapter 2 Review Solution Manual Already Passed
Institutional framework - Answers Formal and informal institutions governing individual and firm
behavoirs
Formal institutions - Answers Institutions represented by laws, regulations, and rules
Regulatory pillar - Answers The coercive power of governments
Informal Insistutions - Answers Institutions represented by cultures, ethics, and norms
Normative pillar - Answers The mechanism through which norms influence individual and firm behavior
Norms - Answers Values, beliefs, and actions of relevant players that influence the focal individuals and
firms
Cognitive Pillar - Answers The internalized values and beliefs that guide indivisual and firm behavior
Transaction costs - Answers The costs associated with economic transactions or the costs of doing
business
Opportunism - Answers The act of seeking self-interest with guile
Bounded rationality - Answers The necessity of making rational decisions in the absence of complete
information
Political system - Answers The rules of the game on how a country is governed politically
Democracy - Answers A political system in which citizens
Totalitarianism - Answers A political system in which one person or patry exercises absolute political
control over the population
Political Risk - Answers Risk associated with political changes that may negatively impact domestic and
foreign firms
Legal System - Answers The rules of the game how a country's laws are enacted and enforced
Civil Law - Answers A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgements
Common Law - Answers A legal tradition that is shaped by precedents and traditions from previous
judicial decisions
Theocratic law - Answers A legal system based on religious teachings
Property rights - Answers The legal rights to use an economic property and to derive income and
benefits from it
Institutional framework - Answers Formal and informal institutions governing individual and firm
behavoirs
Formal institutions - Answers Institutions represented by laws, regulations, and rules
Regulatory pillar - Answers The coercive power of governments
Informal Insistutions - Answers Institutions represented by cultures, ethics, and norms
Normative pillar - Answers The mechanism through which norms influence individual and firm behavior
Norms - Answers Values, beliefs, and actions of relevant players that influence the focal individuals and
firms
Cognitive Pillar - Answers The internalized values and beliefs that guide indivisual and firm behavior
Transaction costs - Answers The costs associated with economic transactions or the costs of doing
business
Opportunism - Answers The act of seeking self-interest with guile
Bounded rationality - Answers The necessity of making rational decisions in the absence of complete
information
Political system - Answers The rules of the game on how a country is governed politically
Democracy - Answers A political system in which citizens
Totalitarianism - Answers A political system in which one person or patry exercises absolute political
control over the population
Political Risk - Answers Risk associated with political changes that may negatively impact domestic and
foreign firms
Legal System - Answers The rules of the game how a country's laws are enacted and enforced
Civil Law - Answers A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgements
Common Law - Answers A legal tradition that is shaped by precedents and traditions from previous
judicial decisions
Theocratic law - Answers A legal system based on religious teachings
Property rights - Answers The legal rights to use an economic property and to derive income and
benefits from it
