GBA flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Integration-Responsiveness Grid

A two-axis framework plotting need for global integration against need for local responsiveness, yielding global, multidomestic, transnational, and international strategies.

CAGE Distance Framework

Ghemawat's model measuring Cultural, Administrative, Geographic, and Economic distance between markets; greater distance raises the cost and risk of cross-border expansion.

OLI Paradigm

Dunning's explanation of foreign direct investment: firms invest abroad when ownership, location, and internalization advantages jointly favor direct control over exporting or licensing.

VRIO Analysis

A resource test asking whether a capability is valuable, rare, costly to imitate, and supported by organization; sustained advantage requires all four conditions.

Price Escalation

The rise in export price over domestic price caused by tariffs, freight, insurance, currency conversion, and channel margins between producer and final buyer.

Country-of-Origin Effect

The tendency of buyers to infer product quality or credibility from the country where it is made or branded, moderated by category and consumer ethnocentrism.

Incoterms Risk Transfer

Standard trade terms defining where seller cost and risk end; for FOB risk passes at ship's rail, for CIF the seller also insures to destination.

Global Account Management

A structure assigning coordinated cross-border service to strategic multinational customers through a single accountable team and standardized pricing and service terms.

Hofstede Power Distance

A cultural dimension measuring the extent to which less powerful members accept unequal distribution of power; high scores favor hierarchy and directive leadership.

High-Context Communication

Hall's category for cultures where meaning resides largely in situation, relationships, and nonverbal cues rather than explicit verbal statements.

Cultural Intelligence (CQ)

The capability to function effectively across cultures, composed of motivational drive, cultural knowledge, metacognitive strategy, and behavioral action components.

Expatriate Failure

Premature return or underperformance of an assigned manager abroad; strongest predictors are family adjustment difficulty and weak relational skills, not technical competence.

Interest Rate Parity

A condition in which the forward premium or discount on a currency equals the interest rate differential between the two currencies, preventing riskless arbitrage.

Translation Exposure

Accounting exposure arising when foreign subsidiary financial statements are converted into the parent's currency, producing cumulative translation adjustment entries in equity.

Transaction Exposure

The risk that exchange rate movements change the home-currency value of already contracted foreign-currency receivables, payables, or committed cash flows.

Arm's-Length Principle

The transfer pricing standard requiring related-party transactions to be priced as comparable unrelated parties would agree, supported by comparable or cost-plus methods.

Comparative Advantage

The principle that a country benefits from specializing in goods whose production carries the lowest opportunity cost, even without absolute cost advantage.

Bullwhip Effect

Upstream amplification of demand variability caused by order batching, promotions, forecasting errors, and shortage gaming along the supply chain.

Rules of Origin

Criteria determining a product's economic nationality, used to decide eligibility for preferential tariffs under free trade agreements and for quota treatment.

Total Landed Cost

The full delivered cost of imported goods, combining unit price, freight, insurance, duties, taxes, handling, and inventory carrying costs.

Critical Path Method

A scheduling technique identifying the longest dependent sequence of activities; its duration sets the minimum project completion time and carries zero float.

Cost Performance Index

Earned value divided by actual cost; a value below one indicates the project has spent more than the work completed is worth.

Make-or-Buy Decision

A sourcing choice comparing internal production cost, capacity, quality control, and intellectual property protection against external supplier pricing and flexibility.

Kanban Pull System

A lean scheduling mechanism where downstream consumption signals upstream replenishment, limiting work-in-process inventory and preventing overproduction.

FCPA

The US Foreign Corrupt Practices Act prohibits bribery of foreign officials and requires accurate books and records, extending liability to third-party intermediaries.

UK Bribery Act

UK legislation criminalizing bribery worldwide and creating a corporate offense for failing to prevent bribery, with adequate procedures as the defense.

Facilitation Payments

Small payments to expedite routine government actions; narrowly excepted under the FCPA but generally prohibited under the UK Bribery Act.

Compliance Program Elements

Structured controls including risk assessment, leadership commitment, code of conduct, partner due diligence, training, monitoring, and consistent disciplinary enforcement.

Cloud Service Models

IaaS supplies infrastructure, PaaS supplies development platforms, and SaaS supplies applications; the consumer's management responsibility decreases from IaaS to SaaS.

Data Governance

The assignment of data ownership, quality standards, access controls, and lifecycle rules that make analytics and reporting reliable and auditable.

Scope 3 Emissions

Indirect greenhouse gas emissions from the value chain, including purchased goods, transport, business travel, and product use, typically the largest category.

Double Materiality

A reporting concept requiring disclosure of both how sustainability issues affect enterprise value and how the company impacts society and environment.