INTERNATIONAL BUSINESS AND TRADE (MIDTERM)

Process in which two or more states in a broadly defined geographic area reduce a range of trade barriers to advance or protect a set of economic goals.

The most basic type of economic integration is a simple free-trade area. In this form, attention is focused almost exclusively on a reduction of the tariffs and quotas that restrict trade.

The basic nature of simple free trade is expanded to include trade in non-goods such as services. Where a simple free-trade area need only address the question of tariffs and quotas, the trade in services and a widening of trade in goods raises questions of regulatory convergence and the harmonization of rules of operation and governance.

A coherent whole characterized as a collection, sequence, or progression of values or elements varying by minute degrees.

Also called customs duty, tax levied upon goods as they cross national boundaries, usually by the government of the importing country.

In international trade, government-imposed limit on the quantity, or in exceptional cases the value, of the goods or services that may be exported or imported over a specified period of time.

Also called laissez-faire, a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).

In industrialized nations, portion of the national money supply, consisting of bank notes and government-issued paper money and coins, that does not require endorsement in serving as a medium of exchange; among less developed societies, currency encompasses a wide diversity of items (e.g., livestock, stone carvings, tobacco) used as exchange media as well as signs of value or wealth.

The process by which key economic decisions are made or influenced by central governments.

Spanish acronym of Mercado Común del Sur, Portuguese Mercosul, acronym of Mercado Comum do Sul, or Common Market of the South, South American regional economic organization.

Controversial trade pact signed in 1992 that gradually eliminated most tariffs and other trade barriers on products and services passing between the United States, Canada, and Mexico.

Spanish Comunidad Andina (CAN), formerly (1969–97) Andean Group, South American organization founded to encourage industrial, agricultural, social, and trade cooperation.

Organizationally designed and supervised market intended to create more efficiency choice.

Investment in an enterprise that is resident in a country other than that of the foreign direct investor.

International organization comprising 27 European countries and governing common economic, social, and security policies.

International organization established by the governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in 1967 to accelerate economic growth, social progress, and cultural development and to promote peace and security in Southeast Asia.

A trade agreement by which a group of countries charges a common set of tariffs to the rest of the world while granting free trade among themselves.

French Union Économique Benelux, or Dutch Benelux Economische Unie, economic union of Belgium, the Netherlands, and Luxembourg, with the objective of bringing about total economic integration by ensuring free circulation of persons, goods, capital, and services; by following a coordinated policy in the economic, financial, and social fields; and by pursuing a common policy with regard to foreign trade.

International organization established to supervise and liberalize world trade. This is the successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1947 in the expectation that it would soon be replaced by a specialized agency of the United Nations (UN) to be called the International Trade Organization (ITO).

Contractual agreement between states concerning their trade relationships.

Set of multilateral trade agreements aimed at the abolition of quotas and the reduction of tariff duties among the contracting nations.

It seeks economic cooperation among its members. Spanish Asociación Latinoamericana de Integración, organization that was established by the Treaty of Montevideo (August 1980) and became operational in March 1981.

Proposed free-trade zone encompassing all of the Americas.

Is a necessary feature of any agreement. If each required party does not gain by the agreement as a whole, there is no incentive to agree to it.

Agreement that assuaged antagonisms between US and Great Britain

Systematic record of all economic transactions.

Multinational organization that was established to coordinate the petroleum policies of its members and to provide member states with technical and economic aid.

It is the beliefs, values, mind-sets, and practices of a specific group of people. It includes the behavior pattern and norms of a specific group—the rules, the assumptions, the perceptions, and the logic and reasoning that are specific to a group.

Refers to how and why we think and function. It encompasses all sorts of things—how we eat, play, dress, work, think, interact, and communicate.

Requires that we reorient our mind-set and, most importantly, our expectations, in order to interpret the gestures, attitudes, and statements of the people we encounter.

This defines simple aspects such as how people dress (casual or formal), how they perceive and value employees, or how they make decisions (as a group or by the manager alone).

Can be viewed as the values held by a majority of the population within the nation. These values are largely unconscious and developed throughout one’s childhood.

Most commonly refers to having an understanding of another culture’s values and perspective.

Defined as something that we prefer over something else—whether it’s a behavior or a tangible item

Are that each of us has been raised with a considerably different set of values from those of our colleagues and counterparts around the world.

We see the world through our own cultural shades.

Many groups are defined by ethnicity, gender, generation, religion, or other characteristics with cultures that are unique to them.

DETERMINANTS OF CULTURE

THREE MAIN CATEGORIES FOR HOW COMMUNICATION AND INTERACTION BETWEEN CULTURES DIFFER

FIVE KEY DIMENSIONS THAT INTERPRET BEHAVIORS, VALUES, AND ATTITUDES

COMPONENTS OF COMMUNICATION

ELEMENTS OF BUSINESS

HIGH-CONTEXT VS. LOW-CONTEXT CULTURES

POLYCHRONIC VS. MONOCHRONIC CULTURES

LONG AND SHORT-TERM ORIENTATION