Chapters 2, 3, 9, 10 Flashcards
(48 cards)
business ethics
principles and standards that determine acceptable conduct in business
ethical issue
-an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
ethical issue examples (5)
-bribery
-misuse of company time
-abusive and intimidating behavior
-misuse of company resources
-conflict of interest
ethical choice
making decisions based on ethics
codes of ethics
formalized rules and standards that describe what a company expects of its employees
social responsibility
Business’s obligation to maximize its positive impact and minimize its negative impact on society
social responsibility requirements
Stage 1: Financial and economic viability
Stage 2: Compliance with legal and regulatory requirements
Stage 3: Ethics, principles, and values
Stage 4: Philanthropic activities
social responsibility issues (7)
-relations with owners/stockholders
-employee relations
-consumer relations
-sustainability issues (pollution)
-alternative energy
-community relations
-response to environmental issues
business responsibility
the practice of creating customer value through the active concern for people, ethics, equity, and environmental impacts while running a profitable business
absolute advantage
a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer
comparative advantage
the bias of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items
outsourcing
the transferring of manufacturing or other tasks to countries where labor and supplies are less expensive
balance of trade
the purchase of goods and services from foreign sources
trade deficit
-a nation’s negative balance of trade
-exist when a country imports more products then they export
trade surplus
a country exports more then they import
Barriers to international trade (6)
-economic
-ethical
-legal
-political
-social/cultural
-technological
GATT (general agreement on Tariffs and trade)
-trade agreement
-signed by 23 countries in 1947
-tariff negotiations
-place where international trade problems could be discussed/resolved
WTO (world trade organization)
deals with the rules of trade between nations
NAFTA (north american free trade agreement)
-eliminates most tariffs and trade restrictions on agricultural and manufactured products
-encourage trade among Canada, US, and Mexico
EU (European union)
-union of European nations established in 1958
-promote trade among its members
-one of the largest single markets today
world bank
-organization established by the industrialized nations in 1946
-loan money to underdeveloped and developing countries
-formally known as the international bank for reconstruction/development
IMF (International monetary fund)
-organization established in 1947
-promote trade among member nations by eliminating trade barriers and fostering financial cooperation
licensing
trade agreement in which one company allows another company to use its company name, product, patents, brands, trademarks, raw materials, and production in exchange for fee/royalty
exporting
the sale of goods and services to foreign markets
