Extras

• new trade theory: involves exporting and attaining access to a larger global market with the purpose of increasing economies of scale
• national industrial policy: one of three contemporary perspectives that aid in explaining emergence of national competitive advantage
• committed involvement stage: related to FDI
• political system: set of formal institutions that constitute a government
• political system: ensures stability based on laws
• legal system: provides security for intellectual property
• market economy: prices determined by interaction of supply and demand
• rule of law: legal system in which rules are clear, publicly disclosed, fairly enforced, and widely respected
• civil law: based on comprehensive structure where laws are clearly written, accessible, and divided into three categories - commercial, civil, and criminal
• regional trade organizations: NAFTA, EU, ASEAN
• international organization: World Bank, WTO, United Nations Conference on Trade and Development
• expropriation: seizure of company assets with compensation
• nationalization: government seizure of a whole industry, which may or may not include any form of payment
• conciliation: formal process of negotiation with objective to resolve differences in a friendly manner
• arbitration: process in which a neutral third party hears both sides of a case and decides in favor of one party or the other
• litigation: confrontational method of resolving international disputes that involves parties filing lawsuits against each other in order to produce anticipated outcomes for themselves
• central bank: manages exchange rate
• international monetary fund: monitors foreign exchange systems of member countries and lends money to developing economies for stabilizing their currencies
• global financial system: consists of collective financial institutions that facilitate and regulate flows of investment and capital funds worldwide
• merchant banks: provide capital to firms in form of shares rather than loans
• offshore banks: located in jurisdictions with low taxation and regulation
• Japan: highest gross government debt as % of GDP
• fiscal imbalances: represent important source of risk and uncertainty in global business environment
• Russia: lowest gross government debt as % of GDP