BUSA Test #4 Flashcards
(55 cards)
Principles and standards that determine acceptable conduct in business
Business Ethics
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
Bribery, Misuse of company time, Abusive and Intimidating behavior, Misuse of company resources, Conflict of interest, Communications, Business relationships
Examples of Ethical issues
Individual standards and values, Managers’ and co-workers’ influence and opportunities within codes and compliance requirements
Ethical/Unethical Choices in business
Formalized rules and standards that describe what a company expects of its employees
Codes of ethics
A business’s obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility
Economic, legal, ethical, voluntary, philanthropic
Categories of social responsibility
Relations with stockholders and Owners, Employee relations, consumer relations, sustainability issues
Social Responsibility issues
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
Consumerism
Conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities
Sustainability
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 of an item
Absolute advantage
The basis of most international trade, when a country specializes in products that it can supple more efficiently or at a lower cost then it can produce other items
Comparative advantage
The transferring of manufacturing or other tasks - such as data processing - to countries where labor and supplies are less expensive
Outsourcing
The difference in value between a nation’s exports and its imports
Balance of trade
A nation’s negative balance of trade, which exists when that country imports more products than it exports
Trade deficit
A nation’s positive balance of trade, which exists when that country exports more products than it imports
Trade surplus
Economic development, Exchange rates, Laws and regulations, Tariffs and trade restrictions, Exchange controls, Quotas, Embargos, Political Barriers, Social roles, Culture, Technology
International trade barriers
A trade agreement, originally signed by 23 nations in 1947, that provided a forum for tariff negotiations and a place where international trade problems could be resolved and discussed
General Agreement on Tariffs and Trade (GATT)
An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries
World Bank
An organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation
International Money Fund (IMF)
Agreement that eliminates most tariffs and trade restrictions to encourage trade among the United States, Mexico, and Canada
North American Free Trade Agreement (NAFTA) OR United States-Mexico-Canada Agreement (USMCA)
A union of European nations established in 1958 to promote trade among its members; one of the largest single markets today
European Union (EU)
International organization dealing with the rules of trade between nations
World Trade Organization (WTO)
The sale of goods and services to foreign markets
Exporting
