SUMMARIES / DEFINITIONS ON CHAPTER 1 - 7
International Business
3rd Edition
(Mike PENG, Klaus MEYER)
2020
JULIE BOONZAAIER
, CHAPTER 1:
GLOBALIZING BUSINESS
INTERNATIONAL BUSINESS (IB):
1. A FIRM THAT ENGAGES IN INTERNATIONAL (CROSS-BORDER) ECONOMIC ACTIVITIES
AND/OR
2. THE ACTION OF DOING BUSINESS ABOARD.
A MULTINATIONAL ENTERPRISE (MNE): A FIRM THAT ENGAGES IN FOREIGN DIRECT INVESTMENTS
AND OPERATES IN MULTIPLE COUNTRIES.
FOREIGN DIRECT INVESTMENT (FDI): INVESTMENTS IN, CONTROLLING AND MANAGING VALUE-
ADDED ACTIVITIES IN OTHER COUNTRIES.
EMERGING ECONOMIES (EMERGING MARKETS): ECONOMIES THAT ONLY RECENTLY ESTABLISGED
INSTITUTIONAL FRAMEWORKS THAT FACILITATE INTERNATIONAL TRADE AND INVESTMENT,
TYPICALLY WITH LOW- OR MIDDLE-LEVEL INCOME AND ABOVE AVERAGE ECONOMIC GROWTH.
BRIC: BRAZIL, RUSSIA, INDIA AND CHINA
GROSS DOMESTIC PRODUCT (GDP): THE SUM OF VALUE ADDED BY RESIDENT FIRMS,
HOUSEHOLDS AND GOVERNMENTS OPERATING IN AN ECONOMY.
GROSS NATIONAL PRODUCT (GNP): GROSS DOMESTIC PRODUCT + INCOME FROM NON-RESIDENT
SOOURCES ABROAD.
WHAT IS THE GROSS NATIONAL INCOME (GNI): GDP + INCOME FROM NON-RESIDENT SOURCES
ABROAD. GNI IS THE TERM USED BY THE WORL BANK AND OTHER INTERNATIONAL
ORGANIZATIONS TO SUPERSEDE THE TERM GNP.
PURCHASING POWER PARITY (PPP): A CONVERSION THAT DETERMINES THE EQUIVALENT
AMOUNT OF GOODS AND SERVICES DIFFERENT CURRENCIES CAN PURCHASE. THIS CONVERSION
IS USUALLY USED TO CAPTURE THE DIFFERENCES IN COST OF LIVING IN DIFFERENT COUNTRIES.
EXPATRIATE ASSIGNMENT: A TEMPORARY JOB ABROAD WITH A MULTINATIONAL COMPANY.
THE LIABILITY OF OUTSIDERSHIP: THE INHERENT DISADVANTAGE OF OUTSIDERS EXPERIENCE IN
A NEW ENVIRONMENT BECAUSE OF THEIR LACK OF FAMILIARITY.
THE INDUSTRY 4.0: DISRUPTIONS OF OPERATIONS AND SUPPLY CHAINS THROUGH ADVANCES IN
DIGITAL TECHNOLOGIES.
GLOBALIZATION: A PROCESS LEADING TO GREATER INTERDEPENDENCE AND MUTUAL
AWARENESS AMONG ECONOMIC, POLITICAL AND SOCIAL UNITS IN THE WORLD AND AMONG
ACTORS IIN GENERAL.
LIBERALIZATION: THE REMOVAL OF REGULATORY RESTRICTIONS ON BUSINESS.
WAVES OF GLOBALIZATION: THE PATTERN OF GLOBALIZATION ARISING FROM A COMBINATION OF
LONG-TERM TRENDS AND PENDULUM SWINGS.
TRIAD: THREE REGIONS OF DEVELOPED ECONOMIES (NORTH AMERICA, WESTERN EUROPE AND
JAPAN).
, BASE OF THE PYRAMID: THE VAST MAJORITY OF HUMANITY, ABOUT 4 BILLION PEOPLE, WHO MAKE
LESS THEN 1500 EURO A YEAR.
RISK MANAGEMENT: THE IDENTIFICATION AND ASSESSMENT OF RISKS AND THE ACTIONS TAKEN
TO MINIMIZE THEIR IMPACT.
AN ETHNOCENTRIC PERSPECTIVE: A VIEW OF THE WORLD THROUGH THR LENS OF ONE’S OWN
CULTURE.
THE NOT-INVENTED-HERE SYNDROME: THE TENDENCY TO DISTRUST NEW IDEAS COMING FROM
OUTSIDE OF ONE’S OWN ORGANIZATION OR COMMUNITY.
COSMOPOLITANS: THE PEOPLE EMBRACING CULTURAL DIVERSITY AND THE OPPORTUNITIES OF
GLOBALIZATION.
International Business
3rd Edition
(Mike PENG, Klaus MEYER)
2020
JULIE BOONZAAIER
, CHAPTER 1:
GLOBALIZING BUSINESS
INTERNATIONAL BUSINESS (IB):
1. A FIRM THAT ENGAGES IN INTERNATIONAL (CROSS-BORDER) ECONOMIC ACTIVITIES
AND/OR
2. THE ACTION OF DOING BUSINESS ABOARD.
A MULTINATIONAL ENTERPRISE (MNE): A FIRM THAT ENGAGES IN FOREIGN DIRECT INVESTMENTS
AND OPERATES IN MULTIPLE COUNTRIES.
FOREIGN DIRECT INVESTMENT (FDI): INVESTMENTS IN, CONTROLLING AND MANAGING VALUE-
ADDED ACTIVITIES IN OTHER COUNTRIES.
EMERGING ECONOMIES (EMERGING MARKETS): ECONOMIES THAT ONLY RECENTLY ESTABLISGED
INSTITUTIONAL FRAMEWORKS THAT FACILITATE INTERNATIONAL TRADE AND INVESTMENT,
TYPICALLY WITH LOW- OR MIDDLE-LEVEL INCOME AND ABOVE AVERAGE ECONOMIC GROWTH.
BRIC: BRAZIL, RUSSIA, INDIA AND CHINA
GROSS DOMESTIC PRODUCT (GDP): THE SUM OF VALUE ADDED BY RESIDENT FIRMS,
HOUSEHOLDS AND GOVERNMENTS OPERATING IN AN ECONOMY.
GROSS NATIONAL PRODUCT (GNP): GROSS DOMESTIC PRODUCT + INCOME FROM NON-RESIDENT
SOOURCES ABROAD.
WHAT IS THE GROSS NATIONAL INCOME (GNI): GDP + INCOME FROM NON-RESIDENT SOURCES
ABROAD. GNI IS THE TERM USED BY THE WORL BANK AND OTHER INTERNATIONAL
ORGANIZATIONS TO SUPERSEDE THE TERM GNP.
PURCHASING POWER PARITY (PPP): A CONVERSION THAT DETERMINES THE EQUIVALENT
AMOUNT OF GOODS AND SERVICES DIFFERENT CURRENCIES CAN PURCHASE. THIS CONVERSION
IS USUALLY USED TO CAPTURE THE DIFFERENCES IN COST OF LIVING IN DIFFERENT COUNTRIES.
EXPATRIATE ASSIGNMENT: A TEMPORARY JOB ABROAD WITH A MULTINATIONAL COMPANY.
THE LIABILITY OF OUTSIDERSHIP: THE INHERENT DISADVANTAGE OF OUTSIDERS EXPERIENCE IN
A NEW ENVIRONMENT BECAUSE OF THEIR LACK OF FAMILIARITY.
THE INDUSTRY 4.0: DISRUPTIONS OF OPERATIONS AND SUPPLY CHAINS THROUGH ADVANCES IN
DIGITAL TECHNOLOGIES.
GLOBALIZATION: A PROCESS LEADING TO GREATER INTERDEPENDENCE AND MUTUAL
AWARENESS AMONG ECONOMIC, POLITICAL AND SOCIAL UNITS IN THE WORLD AND AMONG
ACTORS IIN GENERAL.
LIBERALIZATION: THE REMOVAL OF REGULATORY RESTRICTIONS ON BUSINESS.
WAVES OF GLOBALIZATION: THE PATTERN OF GLOBALIZATION ARISING FROM A COMBINATION OF
LONG-TERM TRENDS AND PENDULUM SWINGS.
TRIAD: THREE REGIONS OF DEVELOPED ECONOMIES (NORTH AMERICA, WESTERN EUROPE AND
JAPAN).
, BASE OF THE PYRAMID: THE VAST MAJORITY OF HUMANITY, ABOUT 4 BILLION PEOPLE, WHO MAKE
LESS THEN 1500 EURO A YEAR.
RISK MANAGEMENT: THE IDENTIFICATION AND ASSESSMENT OF RISKS AND THE ACTIONS TAKEN
TO MINIMIZE THEIR IMPACT.
AN ETHNOCENTRIC PERSPECTIVE: A VIEW OF THE WORLD THROUGH THR LENS OF ONE’S OWN
CULTURE.
THE NOT-INVENTED-HERE SYNDROME: THE TENDENCY TO DISTRUST NEW IDEAS COMING FROM
OUTSIDE OF ONE’S OWN ORGANIZATION OR COMMUNITY.
COSMOPOLITANS: THE PEOPLE EMBRACING CULTURAL DIVERSITY AND THE OPPORTUNITIES OF
GLOBALIZATION.
