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› 1 Coventry University Global 4 topics
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1 Coventry University Global 4 topics
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What are the 2 economic systems? = market economies, command economies What is a market economy? = free market system where decisions regarding production, investment and distribution are based on demand and supply What is a command economy? = a system where the government determines what goods should be produced and how much should be produced What is a legal system? = the rules that regulate behavior common law = judges have strong influence, facts compared to other cases, equity wins, juries common civil law = judges have little influence, facts compared to rules, law wins, juries exception Theory of Amartya Sen = economic development should be seen as a process of expanding the real freedom what is culture? = the sum of all the beliefs, values and norms shared by a group of people what is value? = ideas about what a group believes to be good, right and desirable what is norms? = social rules and guidelines that prescribe appropriate behavior in particular situations what determines culture? = religion, political, language, education, social structure power distance = how a society deals with the fact that people are unequal in physical and intellectual capabilities uncertainty avoidance = the relationship between the individuals and his fellows individualism vs. collectivism = the extent to which different cultures socialize their members into accepting ambiguous situations and tolerating ambiguity masculinity vs. femininity = the relationship between gender and work roles why is Hofstede's work criticized? = made the assumption there is a one-to-one relationship between culture and the nation state, culture is not static who are the players in international finance? = international banks, MNC, international institutions, government, investors what is the gold standard? = a system in which countries count currencies to gold and guarantee their convertibility why did the gold standard make sense? = it contained a powerful mechanism for achieving balance-of-trade equilibrium by all countries Bretton Woods = a new international monetary system what are the 2 important concepts = location economies, experience effects what are the 4 strategies to compete in international markets? = global standardization strategy, transnational strategy, international strategy, localization strategy x-curve = local responsiveness y-curve = cost reductions
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