Globalization:refers to the shift toward a more integrated and interdependt world economy
Globalization of markets:refers to the merging of historically distinct and separate national markets into one huge global marketpalce.
Globalization of production:refers to sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production(such as labor,energy,land,and capital).
Political economy:stress that the political, economic, and legal systems of a country are interdependent ;they interact and influence each other, and in doing so they affect the level of economic well-being..
Legal system :refers to the rules,or laws,that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained.
Intellectual property:refers to property that is the product of intellectual activity,such as computer software ,a screenplay ,a music score,or the chemical formula for a new drug.
Cross-cultural literacy:an understanding of how cultural differences across and within nations can affect the way business is practiced.
Social structure :refers to its basic social organization.
Caste system: a closed system of stratification in which social position si determined by the family into which a person is born,and change in that position is usually not possible during an individual’s lifetime.
Class system: a less rigid form of social stratification in which social mobility is possible.
Business ethics： are the accepted principles of right or wrong governing the conduct of businesspeople .
Ethical dilemmas :they are situations in which none of the available alternatives seems ethically acceptable.
Cultural relativism: which is the belief that ethics are nothing more than the reflection of a culture .
Constant returns to specialization: the units of resources required to produce a good are assumed to remain constant no matter where one is on a country’s production possibility.
Voluntary export restraint(VER): is a quota on trade imposed by the exporting country ,typically at the request of the importing country’s government.
Local content requirement : is a requirement that some specific fraction of a good be produced domestically.
Regional economic interation: we mean agreements among countries in a geographic region to reduce , and ultimately remove ,tariff and nontariff barriers to the free flow of goods,serbices, and factors of production between each other
Trade creation: occurs when low-cost producers within the free trade area replace high-cost domestic producers.
Trade diversion: occurs when higher cost suppliers replace lower cost external suppliers within the free trade area
Optimal currency area : similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy.
Foreign exchange risk:by which we mean the adverse consequences of unpredictable changes in exchange rate.
Currency speculation: typically involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
Currency swap: is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates.
Fisher Effect :states that a country’s “nominal” interest rate (i) is the sum of the required “real” rate of interest ( r ) and the expected rate of inflation over the period for which the funds are to be lent (I) .More formally, i= r+ I
Currency crisis : occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation of its value or forces authorities to expend large volumes of international currency reserves and sharply increase interest rates to defend the prevailing exchange rate.
Eurobonds : are normally underwritten by an internationa syndicate of banks and placed in countries other than the one in whose currency the bond is denominated.
Core competence : refers to skills within the firm that competitors cannot easily match or imitate.
Experience curve: refers to systematic reductions in production costs that have been observed to occur over the life of a product.
Vertical differentiation : which refers to the location of decision-making responsibilities within a structure.
Horizontal differentiation: which refers to the formal division of the organization into subunits.
Licensing agreement : is a arrangement whereby a licensor grants the rights to intangible property to another entity for a specified period ,and in return, the licensor receives a royalty fee from the licensee.
