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taking disadvantage of another person's trust out of purely selfish reasons
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institutional transitions Lernen beginnen
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fundamental and comprehensive changes introduced to the formal and informal rulesof the game that affect organizations as players
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firms and managers rationally pursue their interests and make choices within the given institutional framework; formal and informal institutions are combined to govern firm behaviour
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political systems, economic systems, legal systems
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systems of the rules of the game on how a country is governed politically; democracry, authoritarianism
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risks associated with political changes that can negatively impact domestic and foreign firms
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rules of the game on how a country is governed economically; market economy, command economy
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"invisible hand" of market forces exists
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all factors of production are owned and controlled by the government or the state
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the varieties-of-capitalism view Lernen beginnen
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economies have different inherent logics of how markets coordinate economic activity
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vocational training system for crafts and professions
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the rules of the game on how a country's laws are enacted and enforced
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precedents and traditions shape legal tradition
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the rule of law that has been created by precedents of cases in court
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intellectual property rights Lernen beginnen
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patents, copyrights, trademarks
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legal rights awarded by government authorities to inventors of new technological ideas, who are given exclusive (monopoly) rights to derive income from such inventions
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exclusive legal rights of authors and publishers to publish and disseminate their work
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exclusive rights of firms to use specific names, brands and designs to differentiate their products from others
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institutions (according to Douglas North) Lernen beginnen
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humanly devised constraints that structure political, economic and social interaction
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formal constraints that consist of formal rules, laws and agreements
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half fromal, half informal constraints, that consist of informal expectations, attitudes, and transaction rules; they answer the question of how one should behave
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informal constraints that consist of broadly shared convictions and cognitive structures; deeply ingrained ground rules
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institutions (economists view) Lernen beginnen
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reduce uncertainty; make transaction costs visible
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institutions (sociologists view) Lernen beginnen
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institutional isomorphism Lernen beginnen
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the processes that force a unit within a population to become more similar to other units with a similar institutional context
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coercive (through regulation), mimetic (through imitation), normative (through shared norms)
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rules on how shareholders and other stakeholderscan control managers
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the state, the market, civil society
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corrective approach, rules result from rationalization and regulation of human activities; the state
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competitive approach, rules result from free market of supply and demand; the market
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cooperative approach, rules result from respect and esteem for, connectedness with, loyalty to the group
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Liberal Market Model (anglo-saxon model), Coordinated Market Model (social market model), Asian Model
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the dependence of economic outcomes on the path of previous outcomes; how history matters, and how it shapes the present
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stages of economic development (Douglas North) Lernen beginnen
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1. Trade within the village, 2. Trade beyond the village, 3. Long Distance Trade, 4. Urbanisation, 5. Modern Trade
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gaps in the institutional framework; absence of intermediary firms; omissions in regulatory systems on which multinational companies depend
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institutional development Lernen beginnen
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process of turning less complex system into a more complex one
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changing the system from one, to another type; shock therapy/gradual approach
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rapid replacement, all at once (e.g. Poland, Russia)
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emphasizes learning and slow adaptation (e.g. China, Vietnam)
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