YINTBUS-chap5and6 PDF

Chapter 5: The Cultural Environment Neutral vs Emotional – extent to which a society expresses itself emotionally. Culture – a learned behavior; a way of life for one group of people living in a singl...

Chapter 5: The Cultural Environment Neutral vs Emotional – extent to which a society expresses itself emotionally. Culture – a learned behavior; a way of life for one group of people living in a single, related, and independent community. Specific vs Diffuse – degree to which a society compartmentalizes roles. Acculturation – term used to describe the ability of a firm to adjust to a culture different from its own. Achievement vs Ascription – are handed out: performance vs place in society. Elements of Culture Primary and Secondary Sources – sources of cultural Language (verbal or nonverbal) information. Religion Values and Attitudes Inwha – Korean philosophy stressing harmony among Manners and Customs unequals, loyalty to parents and authority figures, and Material Elements superiors being responsible for the well-being of Aesthetics subordinates. Education Guanxi – Chinese philosophy denoting friendships among Social Institutions unequals and unlimited exchanges of favors; it is not based on Backward Translation – translating a message from English sentiment, emotions, or a group orientation. into a foreign language, then translating it back into English to check for accuracy. Chapter 6: The Legal and Political Environment of Global Values – basic beliefs or philosophies that are pervasive in a Business society. Democracy – Greek for ‘rule by the people’; form of Attitudes – feelings or opinions. government in which all citizens have a right to vote. Manners and Customs – the way a society does things. Athenian Democracy – purest form of democracy, in which all Material Culture – direct result of technology; best adult citizens vote directly in matters affecting the demonstrated by economic, social, financial, and marketing community. infrastructures. Representative Democracy – form of government in which Aesthetics – what is perceived as taste and beauty in a citizens vote to elect given individuals to serve as their society. representatives for a certain period of time. Social Institutions – the way people in a society relate to one Totalitarian Government – system of government in which another within group settings. individuals govern without the support or consent of the citizenry; eg. military dictatorship. Reference Groups – groups that are important to individuals; could be primary and secondary. Communism – economic ideology where the government/state basically owns and controls all major Social Stratification – the extent to which groups at the top of factors of production and is philosophically an economically the social pyramid exert control over others at lower levels of classes society. the pyramid. Socialism – economic ideology where the government/state Individualism vs Collectivism – worth of an individual vs plays a strong role in the economy and may own stakes in worth of a group. certain businesses. Power Distance – level of egalitarianism (equality) in a Capitalism – economic ideology where businesses are society. privately owned, strong individual incentives exist, and the government plays very little role in the economy. Masculine vs Feminine – extent to which a society minimizes gender inequality. Economic Risks – risks that economic problems or mismanagement in a given country will have a meaningful Time Orientation – extent to which a society emphasizes negative impact upon the conduct of business in that country. short-run or long-run time horizons. Political Risks – risks that political forces or problems in a Universalism vs Particularism – importance of rules vs given country will have a meaningful negative impact upon relationships. the conduct of business in that country. Micropolitical Risk – political risk that only affects a certain Antitrust Law – laws to promote ‘fair competition’ among industry or set of firms in a given country. businesses. Macropolitical Risk – political risk that essentially affects all Collusion – practice of companies acting in a manner that businesses in a given country. secretly thwarts competition among themselves. Terrorism – involves unlawful acts of violence threatening the Monopoly – situation where there is only a single seller of a physical safety of others. product in an industry, and there are very high barriers to enter this industry. Terrorism Risk Insurance Act of 2002 – US law that after a certain deductible provides US businesses government Product Safety Law – law that establishes the standards of insurance coverage for the risk of terrorism. product safety to which the manufacturers and sellers of product safety to which the manufacturers and sellers of US International Development Financial Corporation – US products are to be held. government agency that sells political risk insurance to US businesses operating in countries with which the United Caveat Emptor – ‘buyer beware’; involves placing the burden States has a bilateral investment treaty. of determining product safety on consumers. Corruption – situation where businesses are able to illegally Caveat Venditor – ‘seller beware’; involves placing o alter relevant private and/or public decision making by way of manufacturers/sellers of products the burden of making sure bribes, kickbacks, blackmail, extortion, and related activities. products are safe or at least clearly and explicitly warning consumers about the potential safety risks of said product. Private Corruption – business corruption involving other private businesses, individuals or groups. Dispute Settlement Law – law governing how disputes arising in the conduct of global business are settled. Public Corruption – practice of making illegal payments of government officials or engaging in blackmail, extortion, or Litigation – involves bringing a dispute to a other related activities in order to obtain government publicly/governmentally run court of law for resolution. contracts or governmental approval for business activities. Arbitration – alternative dispute resolution process whereby Foreign Corrupt Policies Act – US law that prohibits US the parties designate a neutral private person or group of companies from bribing or otherwise corrupting foreign persons to hear and decide the case. government officials in order to win foreign government Intellectual Property – property that is the product of contracts or obtain other foreign government assistance for intellectual rather than physical activity. their businesses. Intellectual Property Protections – limited monopoly rights Civil Law Legal System – legal system based on a legally granted by a nation to the creator of intellectual comprehensive listing of legal rules in sets of written codes of property. law. Patent – right granted to the inventor of a product or process Common Law Legal System – legal system where legislative that excludes others from selling, making, or using the bodies generally enact less specific legal rules giving invention for a certain period of time. judges/courts considerable authority in interpreting these rules based on precedent and other factors. Trademark – distinctive phrase, name, word, picture, symbol, or design, or a combination of these, that identifies a given Theocratic Law Legal System – legal system based on a business’s service or product and is owned by said business. religious document and religious teachings. Genericized Trademark – trademark that has become so well Criminal Law – law that establishes which violations of a know or colloquial that it now describes a general class of nation’s law are crimes punishable by possible incarceration. product or service, as opposed to a specific product or service Contract Law – body of law governing legally enforceable as intended by the trademark’s owner. agreements between parties to engage in economic Copyright – exclusive legal right authors, playwrights, exchange. publishers, artists, and composers have to publish and Tax Law – body of law dealing with government levying of disseminate their work as they see fit. taxes on individuals and corporations. Tax Haven Countries – countries with little or no tax transparency.