MGT 3650 Chapter Notes - Chapter 1: Fortune Global 500, Gross Domestic Product
Document Summary
International business(ib): a business or firm that engages in international economic activities or the action of doing business abroad. Multinational enterprise(mne): a firm that engages in foreign direct investment and operates in multiple countries. Foreign direct investment(fdi): investment in, controlling and managing value added activities in other countries. Emerging economy: a developing country, contributes close to 50% to global gross domestic product(measured by purchasing power parity ppp) Viewed as a pyramid, the global economy has one billion people at the top and another billion in the second tier. The majority of humanity(5 billion) people makes up the base of the pyramid(make 2000 a year on a per capita basis) Gross domestic product(gdp): the sum of value added by resident firms, households and gov"t operating in the economy. Purchasing power parity (ppp): conversion that determines the equivalent amount of goods and services different currencies can purchase.
