Tuesday, July 5, 2011

IB Glossary


North American Free Trade Agreement (NAFTA)
Free trade area between Canada, Mexico, and the United States.

Political risk
The likelihood that political forces will cause drastic changes in a country’s business environment that adversely affect the profit and other goals of a particular business enterprise.

Polycentric staffing
A staffing policy in an MNE in which host-country nationals are recruited to manage subsidiaries in their own country, while parent-country nationals occupy key positions at corporate headquarters.

Positive sum game
A situation in which all countries can benefit even if some benefit more that others.