BBB4M Chapter 4,5, & 7 Glossary

• Culture


  The knowledge, experience, beliefs, values, attitudes, religions, arts, symbols, and possessions acquired by a group of people over time
• Subculture


  A cultural group within a larger or predominant culture, distinguished from it by factors such as class, ethnic background, religion, or lifestyle
• Counterculture


  To oppose mainstream values and attitudes, usually with a view to influence change
• Cultural Intelligence


  The capability to adapt, relate, and work efficiently across various cultures
• Commodity


  A Canadian business that strictly exports a commodity, such as oil or gold, requires less cultural awareness than a business that operates a manufacturing plant, corporate office, retail store, or restaurant in partnership with foreigners
• Rationalization


  Includes any attempt to increase a company's effectiveness or efficiency
• Cultural Norm


  A value society holds in common
• Monochronic


  Members of monochronic cultures see time as linear and sequential, and focus on one thing at a time in a logical progression
• Polychronic


  In polychronic cultures, time involves many things happening simultaneously with the participation of many people
• Spatial Perception


  Refers to individual comfort levels with personal space and physical contact
• Cultural Dimension


  Identified by Dutch anthropologist Geert Hofstede (b. 1928), which he uses to describe specific aspects of culture and to help those doing business in other countries understand the cultural differences between two countries
• Economic system


  The way a country organises its resources and distributes goods and services to its citizens
• Political system


  The type of government by which a country is run
• Circular flow model


  A model of the economy in which exchanges are represented as flows of money, goods, and services between economic decision makers, represented in a simple way as households or companies
• Market economy


  Also known as capitalism or private enterprise, an economic system determined by free competition, in which businesses, consumers, and government act independently of one another, and market forces and self-interest determine what goods are created and sold
• Centrally planned economy


  Also known as communism or command economy, an economic system in which the government controls all elements of the economy, including prices, wages, and production
• Mixed economy


  Also known as a modified free enterprise system, an economic system that sits between a market economy and a centrally planned economy, combining government intervention and private enterprise
• Democracy


  A state governed by all eligible members of the population through elected representatives. A democracy is characterised by free and fair elections, the rule of law, free speech and press, the right to assembly, and freedom of religion
• Autocracy


  A state governed by a single individual or a small group of people with unlimited power
• Totalitarianism


  A centralised system of government in which the government, led by a dictator, controls all aspects of the state, and citizens are subservient
• Developed economies


  Also known as industrialised countries, countries that are characterised by a high per capita income or strong gross domestic product, and have moved from a reliance on primary industries into predominantly tertiary industries. Developed countries have high standards of living and literacy rates, and make major advancements in healthcare and technology
• Gross domestic product (GDP)


  The total goods and services produced in one country in one year
• Economies in transition


  A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a market economy
• Developing economies


  Also known as industrialised countries, countries that are characterised by a high per capita income or strong gross domestic product, and have moved from a reliance on primary industries into predominantly tertiary industries. Developed countries have high standards of living and literacy rates, and make major advancements in healthcare and technology
• Index of Economic freedom

  An index that has been measuring the impact of liberty and free markets around the globe for more than two decades. The Index addresses 12 different freedoms in 186 countries
• Business Cycle


  Recurring periods of increased and decreased economic activity, or expansions and contractions. The business cycle is characterised by four stages: recession, trough, expansion, and peak
• Monetary policy


  The process by which a country's federal government, through its central bank, makes decisions to determine the money supply (the amount of money in circulation in the country), interest rates, and the inflation rate. The goal of monetary policy is economic stability and to ensure trust in the currency
• Fiscal policy


  The way the government at all levels (municipal, provincial, and federal) collects and spends money
• Absolute advantage


  The ability of one country to use its resources to make a product or service more efficiently than other countries
• Opportunity cost


  The value of what is forgone, or the cost of giving something up to get something else. For example, the opportunity cost of being in class is the money a student could make working at a job
• Comparative advantage


  The ability of a country to produce a good at a lower opportunity cost than another country. Comparative advantage is the foundation for specialisation and trade
• Lobbying


  The process through which companies, special-interest groups, or individuals attempt to influence government officials and persuade them to endorse public policy favourable to these groups
• Corporate social responsibility (CSR)


  A form of corporate self-regulation and accountability that many businesses are incorporating into their business plans. CSR usually goes beyond compliance with the law and engages companies in actively promoting the social good. Supporters of CSR say it can increase profits by elevating a business's public reputation.
• Stakeholder


  Groups affected by the organization that have a stake in its success and profitability.
• Primary stakeholders


  • Customers
  • Suppliers
  • Competitors
  • Employees
• Secondary stakeholders


  • Local community
  • Special-interest groups
  • The media
• Business ethics


  A set of rules or guidelines that management or individuals follow when making decisions facing their company.
• Ethical dilemma


  A situation in which an individual, government, or business must make a choice between two alternatives, neither of which provides a completely satisfactory solution.
• Ethical imperialism


  Also known as ethical absolutism, a view of culture based on the idea that there are certain universal truths or values that are standard across all cultures; if something is wrong in one country, it is wrong in all countries.
• Cultural relativism


  A view of culture based on the idea that a culture's different values should be respected, as the ethics of one culture are not better than those of another.