Test 2: Ch 4,5, & 7 Flashcards

Question

Question 25

Answer 1

Positive Government Intervention

Answer 2

Trade Policies

Answer 3

Environmental Organizations

Answer 4

One of the International Trade Treaties

Answer 5

One of the International Trade Treaties

Answer 6

Identify a Global Institution

Answer 7

Question 1: **Values** are *ideas* about what a group believes to be good, right and desirable while **norms** are the *social rules & guidelines* that prescribe appropriate behavior in particular situations.

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Question 2: **Culture** is a *system* of values and norms that are shared *among* a group of people where as **society** is a *group* of people who *share* a common set of values and norms.

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Question 3: An **association** of two or more individuals who have a *shared* since of identity and who *interact* with each other in structured ways on the basis of a common set of expectations about each other’s behavior.

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Question 4: **Individualistic** societies are better at *creating* innovative ideas while **collectivism** societies are better at *implementing* those ideas.

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Question 5: A **system of social stratification** in which social position is determined by the family into which a person is born and lacks social mobility. -Eg. India

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Question 6: An **ethical system** that teaches the importance of attaining personal salvation through right action by creation guidelines for relationship with others. -Originated during 5th Century in China by a man named Confucius. -High morality and loyalty are central. -Unlike religions, is not concerned with the *supernatural, supreme being, & afterlife*. -Currently still being practiced in China, Korea, and Japan

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Question 7: He argued that Protestant ethics emphasized the importance of hard work with **wealth creation** (for the glory of god) and **frugality** (abstinence from worldly pleasures) help pave the development of capitalism in the western world. -Basically instead of indulging by consuming (frugality), people should invest in capitalistic enterprises (wealth creation). -Opposes the Catholic promise of salvation in the *next* world instead of *this* world does not produce the same kind of work ethic.

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Question 8: It is a Hofstede’s dimension that measures the extent to which cultures *accept ambiguous situations* and *tolerate uncertainty*. -High level value job security, career patterns, retirement benefits, etc. -Low level value readiness to take risks and less emotional resistance to change.

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Question 9: A Hofstede’s dimension that focuses on how society deals with the fact that people are unequal in physical and intellectual capabilities. -High level cultures are found in countries that let inequalities grow overtime into inequalities of power and wealth. -Low level cultures are found in societies that try to play down such any qualities as much as possible.

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Question 10: behavior that is based on the belief in the superiority of one’s own ethnic group or culture; often shows disregard or concern for the culture of other countries.

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Question 11: a course of action that does not violate a company’s acccepted principles of right and wrong governing the conduct of business people (business ethics).

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Question 12: occurs when a resource held in common by all, but owned by no one is overused by individuals, resulting in its degradation. -Originated by Garrett Hardin in 16th century England.

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Question 13: 1. **Foreign Corrupt Practices Act** is the US law regulating behavior regarding the contact of international business in the taking of bribes and other unethical actions. 2. Facilitating payments are payments to ensure receiving the standard treatment that a business and government but might not due to the obstruction of a foreign official. * AKA: Speed Money or Grease Payments * they are not payments to fix your contract, stubborn not otherwise be secured, nor are they payments to obtain exclusive, preferential treatment.

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Question 14: a situation in which there is no ethically acceptable solution. Requires people to have a moral compass or an ethical algorithm to guide them through such dilemmas to find an acceptable solution.

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Question 15: the values and norms shared among and organization’s employees. When the culture in a business does not encourage people to think through the ethical consequences of business decisions will most likely result in unethical behavior.

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Question 16: one who claims that a multinational’s home-country standards of ethics are appropriate for companies to follow in foreign countries. *AKA: My way, is the right way.

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Question 17: these hold that the more worth of actions or practices are determined by their consequences. *AKA the greatest good for the greatest amount of people.

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Question 18: formal statement of ethical priorities. It is considered essential in building an organizational culture that emphasizes ethical behavior.

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Question 19: to review to make sure that the decisions are consistent with the ethical principles stated in the code of ethics. Without auditing, business people may not know if their decision process is working and if changes should be made to ensure greater compliance with the code of ethics.

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Question 20: it’s enables managers and employees to: * walk away from a decision that is possible but unethical * have strength to say no to the superior, who instruct them to pursue actions that are unethical * have the integrity to go public to the media and to whistle blow on persistent, unethical behavior in a company

Answer 27

Question 21: specific tariff is a tariff levied as a fixed charge for each unit of a good imported (like three dollars per barrel of oil), while ad valorem tariff is a tariff levied as a proportion of the value of an imported goods ($100 on first 10,000 units, then $120 on the next 20,000 units)

Answer 28

Question 22: Pros * to help domestic **producers** to be able to *compete *in the international market. * to help domestic **firms** to reach a *dominant position* in industries of importance and that the world market lacks the ability to profitable support more than a few firms. * Eg: Aerospace and Semiconductor industries * to help domestic **economy** to *raise employment* and *tax revenues* generated from domestic businesses. Cons *Subsidies are paid by taxed individuals and companies.

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Question 23: A direct restriction on the quantity of some good that may be imported into a country by issuing import licenses to a group of individuals or firms.

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Question 24: The selling of goods in a foreign market for less than their *cost of production* or below their *fair* price. * **Fair** market value of good is normally judged to be greater than the costs of producing that good enough to create a *fair* profit margin. * Producers will use the substantial profits from home markets to continue running while subsidizing price in foreign markets to drive out indigenous competitors. * Once driving everyone out, they will jack up the prices.

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Question 25: It is necessary to protect jobs and industries from **unfair** foreign competition. * When producers from an *exporting* country are extensively subsidized by their own government.

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Question 26: * 1991-2003 To pressure Iraq’s rogue state to mend its ways or hasten a change of government. * Tried to impoverish Cuba into economic hardship to lead the downfall of Cuba’s communist government and be replaced by a pro-democracy/pro-U.S. regime. * Libya and Iran were accused of supporting terrorist action against the U.S. Sanctions were lowered in Libya (2003) and Iran (2015) after they promise to halt there nuclear programs. * Trump administration reimposed sanctions on Iran after accusing Iran of not adhering to the 2015 agreement.

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Question 27: People with a higher level & income are more likely to care about the environment.

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Question 28: The **General Agreement on Tariffs and Trade** was treaty under U.S. leadership created in 1947. * Objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, etc. * Originally 19 nations that grew up to 120 nations. * Deeply influenced by the effects of the Great Depression and World War II.

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Question 29: Trade reduction was to spread over eight rounds. * It was very successful in its early years. * Eg: Average tariff in the U.S. declined by nearly 92% between the Geneva Round of 1947 and the Tokyo Round of 1973-1979.

Answer 36

Question 30: **The World Trade Organization** wrapped up the *GATT*, the *General Agreement on Trade in Services* (GATS) and the *Agreement on Trade-Related Aspects of Intellectual Property* (TRIPS) into one umbrella organization. * GATS: Focuses on free trade agreements for services. * TRIPS: Focuses on narrowing gaps in protecting property rights and bringing them into international rule. WTO: 1. Takes responsibility over arbitrating trade disputes and monitoring trade policies of member countries. 2. Unless there is a consensus to reject them, it does not allow member countries to block adoption of arbitration reports in the area of dispute settlement (unlike the GATT) 3. Countries found violating rules by a panel may appeal but the verdict is binding. 4. If offenders fail to comply with the recommendations of panel, trading partners have the right to compensation or to impose trade sanctions. 5. Every stage of the procedure has strict time limits.

Test 2: Ch 4,5, & 7 Flashcards

(60 cards)