Political Economy: The study of how political factors influence the functioning of an economic system.

Foreign Direct Investment: A foreign direct investment is one that gives the investor a controlling interest in a foreign company.

Merchandise Export: Tangible products sent out of a country.

Globalization of Production: Trend by individual firms to disperse parts of their productive process to different locations around the globe to take advantage of differences…

Globalization of Markets: Moving away from an economic system in which national markets are distinct entities isolated by trade barriers and barriers of distance, time,…

Multinational Enterprise (MNE): A firm that owns operations in more than one country.

High Performance Perspective: HR and other executives view HR as a system embedded within the larger system of the firm's strategic implementation. The firm manages…

Alignment Perspective: Senior managers see employees as strategic assets, but they don't invest in overhauling HR capabilities. Therefore, the HR system can't leverage management's perspective.

Compensation Perspective: The firm uses bonuses, incentive pay, and meaningful distinctions in pay to reward high and low performers.

Personnel Perspective: The firm hires and pays people but does not focus on hiring the very best or developing exceptional employees.

HR Scorecard: It is a tool for measuring the contribution of human resource management practices to the financial performance of an organization.

Employment Markets: Employment markets do not function like stock or commodity exchanges where small changes in supply and demand have immediate affect.

Cash-like and Non-cash Rewards: Reward management extends to fringe benefits and indirect compensation.

Contingent Reward: Here the leader/executive management/organization provides rewards if, and only if; subordinates perform adequately and/or try hard enough.

Reward Management System: The Rewards Management System is a multi product system that provides transaction-based rewards management.