| board of directors | A group that has a fiduciary duty to ensure that the company is run consistently with the long-term interests of the owners, or shareholders, of a corporation and that acts as an intermediary between the shareholders and management.
|
 |
|
|
| corporate governance | The relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management, and (3) the board of directors.
|
|
|
|
| currency risk | Potential threat to a firm's operations in a country due to fluctuations in the local currency's exchange rate.
|
|
|
|
| demand conditions | The nature of home-market demand for the industry's product or service.
|
|
|
|
| economic risk | Potential threat to a firm's operations in a country due to economic policies and conditions, including property rights laws and enforcement of those laws.
|
|
|
|
| factor conditions | A nation's position in factors of production.
|
|
|
|
| firm strategy, structure, and vivalry (national advantage) | The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry.
|
|
|
|
| management risk | Potential threat to a firm's operations in a country due to the problems that managers have making decisions in the context of foreign markets.
|
|
|
|
| offshoring | Shifting a value-creating activity from a domestic location to a foreign location.
|
|
|
|
| outsourcing | Using other firms to perform value-creating activities that were previously performed in-house.
|
|
|
|
| political risk | Potential threat to a firm's operations in a country due to ineffectiveness of the domestic political system.
|
|
|
|
| related and supporting industries (national advantage) | The presence, absence, and quality in the nation of supplier industries and other related industries that supply services, support, or technology to firms in the industry value chain.
|
|
|
|
| shareholder activism | Actions by large stockholders to protect their interests when they feel that managerial actions of a corporation diverge from shareholder value maximization.
|