Buisness test 2 Flashcards
What are ethics?
rules that help us tell the difference between right and wrong
What are ethical behaviours?
Behaviour that is in line with ethics: “do the right thing”
what are values
what we think is important ex: respect
what are morals
rules we use to decide what is good or bad ex: stealing
What is culture
The sum of a country’s way of life, beliefs and customs
How does culture impact business
Dealing with people, punctuality, greetings, nonverbal communication, manners and decision making.
What is domestic transaction?
Selling of items produced in the same country.
selling g/s made in the home country
What is international transaction?
- Selling of items g/s produced in other countries
- involves creating, shipping, & selling G/S across the borders.
What are the benefits of international buisnesses?
- Access to markets- markets are 200 times larger than those at home.
- Cheaper labour- lower prices, 1# reason
- Increased quality of goods-countries may be experts
- Increased quantity- can produce more
- Access to natural, human, and capital resources.
What are standardised global products (GP)
items that are offered in the same format in all countries ex. soccer balls and pencils.
its also brand name with worldwide recognition like apple or macdonals.
What are the 5 major reasons for doing international business (5p’s)
- product-more variety
- price- may cost less depending on foreign wages, taxes
- proximity- neighbouring countries-easy to trade
- preference- based on reputation and specialisation
- promotion- technology has made international promotion easier,
what is international/foreign trade?
Involves exchanges across national borders.
What is global economy
- worldwide economic activity between two various countries.
- can affect countries positively or negatively
- expressed in monetary units of accounts. (money)
what are the costs of international trading
- offshore/outsourcing
- human rights-abuse
- environmental degradation -natures resources.
- sustainable development
What are tariffs
tax on certain types of imports, A tariff is a tax imposed by a government on imports or exports of goods
what are non-tariffs
Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.
what are the costs of importing and exports
landed costs
The actual cost of an imported purchased item (vendor cost, transport cost, duties, taxes, broker fees and any other changes)
What are excise taxes
tax on manufacture, sale, or consumption of good within a country.
what are currency fluctuations?
rates fluctuate daily- money changes its price
influencing factors: the strength of the economy, supply and demand, political/ economic events.
what are 5 barriers to international business
- tariffs
- non tariffs
- costs of importing and exporting
- excise taxes
- currency fluctuations
what are imports
the flow of g/s into Canada
what are exports
the flow of g/s out of Canada
What is the balance of trade
value of imports=value of exports
what is the trade deficit & trade surplus
Trade deficit= imports bigger than exports
trade surplus= exports bigger than imports
why is us the number 1 trading partner with Canada
- low cost shipping
- similar culture and language
- a market that is 10x bigger than Canada
top 3 trading countries
- the US
- China
- the UK
What are the 2 main advantages of reducing trade barriers?
- Canadian businesses can sell g/s @ e prices
2. Consumers have access to new foreign g/s
What do trade agreements do
Trade agreements between countries allow g/s to flow more freely across borders.
what is a bilateral agreement?
involve Canada & 1 other country/group
what is a trading bloc
group of countries that share trade interests
what is a joint venture
A joint venture is a business entity created by two or more parties,
what is a strategic alliance
agreement between business (mutual benefit)
What are mergers
2/ more companies join together control over another and combine interests
what is offshoring
relocation of some operation to another country
what is a multinational corporation
conducts business in 1/more countries
very powerful: controls over 80% of the world supply
what is the code of ethics
documents that explain specifically what employees should do in different situations
what is an ethical dilemma?
A moral problem with potential right or wrong answer
Ask questions
who will be helped
who will be hurt
Benefits and problem of the decision
will the decision stand the test of time?
What is a whistleblowing
An employee informs officials/the public about a legalethical violation
What is fraud
a crime of lying or pretending
what is an accounting scandal
accounting records are altered for personal benefits
what do forensic accountants do?
examine legal & financial documents.
what is insider trading?
buying or selling shares based on confidential information.
What does CSR stand for and what is it?
CSR= cooperate social responsibility
CSR is a business vs environment approach to ethics.
CSR achieved through values, ethics, & contributions made to communities
there are 3 aspects
-protect customers
-employees
-owners/shareholders
what are CSR principles
- safe and healthy work environment
- fair labour policies
- environmental protection
- truthful in advertising
- no price discrimination
- charitable donations
CSR laws
- workplace safety
- anti-discrimination
- harassment
- actability issues
- environmental responsibility
What is CSR business laws
- financial goals
- environmental goals
- social gals
what are CSR fair trade and ethical trading?
- helping producers bypass middelmen=s sell goods in other for a fair profit. (they have a logo)
- using trade to ensure basic labour rights of employees in other countries are respected/
What is management
- get things done by directing individuals & teams
- develop & responsible for employees
- achieving goals by deciding on the best use of humans, financial, & material performances
- performs 4 major functions
What are the 4 functions of management
- planning
- organising
- leading
- contorlling
Explain each of the 4 functions of management
- planning-setting goals short terms (sales) long terms (max profitability)
- organising- Arranging people and tasks 3 levels of management upper- CEO. Middle-plant manager lower- assistant mgr
- leading- involves motivating, communication & participation.
- controlling includes…discipline, performance appraisal, budgeting and resource allocation
5 things about managing resources?
- purchasing
- prodiuction
- marketing & distrubution
- R & D
- finance.
leadership styles and what are they
influenced by personality & situation
types: autocratic, laisse-fair and democratic.
what is team
group of people with different skills
what is teamwork
the ability of people to work together towards a common goal
what is social loafing
a member who does less work/nothing
6 types of team teams
- committee
- task force
- cross-functional
- self- managed
- virtual
- informal
What is committee
different areas
ongoing
specific task
what is a task force
accomplish a specific task, disband after work is done.
what is cross-functional
different functional areas
diversity of input
quick decision making
what is self-managed
no official leader
responsible for all work
What is virtual
operate via computer technology over a long distance.
saves time and travel costs.
