Chapter 10

Question 1

Global business

Answer 1

Practice that brings together people from countires with different cultures, values, laws, and ethical standards

Question 2

National culture

Answer 2

A much broader concept than organizational culture and includes everything in our surroundings made by people, both tangible items and intangible entities such as concepts

Question 3

Individualism/collectivism dimension

Answer 3

Refers to how self-oriented members of a culture are in their behavior

Question 4

Power distance Dimension

Answer 4

Power inequality between superiors and subordinates

Question 5

Uncertainty Avoidance

Answer 5

How members of a society respond to uncertainty or ambiguity

Question 6

Self-refernce criterion

Answer 6

The idea that “we” differe from “them” and the unconscious reference to one’s own cultural values, experinces, and knowledge

Question 7

Cultural Relativism

Answer 7

Concept that morality varies from one culture to another and that”right” and “wrong” are defined differently

Question 8

Global common values

Answer 8

Values broadly accepted worldwide

Question 9

Risk compartmentalization

Answer 9

When profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole

Question 10

Adam smith

Answer 10

Professor of logic and moral philosophy during the late eighteenth century who developed critical economic ideas still sonsideted important today

Question 11

Laissez-faire

Answer 11

“invisible hand”, assumes the market, through its own inherent mechanism, keeps commerce in equilibrium

Question 12

John Maynard Keynes

Answer 12

The state could stimulate economic growth and improve stability in the private sector through, controlling interest rates, taxation, and public projects during the 1930s

Question 13

Milton Friedman

Answer 13

Rejected the keynesian conclusion that markets sometimes need intervention to function efficientyl and believed deregulation could reach equilibrium without government intervention

Question 14

Socialism

Answer 14

Advoacting the creation of a society when weath and pwoer are shared and distributed evenly based on the amount of work expended in production

Question 15

Social Democracy

Answer 15

Allows private ownership of property and also features a large government equiped to offere such services as education and healthcare to its citizens

Question 16

Bimodal wealth distribution

Answer 16

Occurs when the middle class shrinks, resulting in highly concentrated wealth among the rich and increased nuumbers of poor people with few resources

Question 17

Rational economics

Answer 17

People are predictable and will maximize the utility of their choices relative to their needs and wants

Question 18

Behavioral economics

Answer 18

Assumes humans act irrationally because of genetics, emtions, learned behavior, heuristics, or rules of thumb

Question 19

Multinational corporations(MNCs)

Answer 19

Public companies that operate on a global scale withou significant ties to any one nation or region

Question 20

Business for Social Responsbility(BSR)

Answer 20

Globally based resource system that endorses following responsible business practices abroad

Question 21

United Nations Global Compact

Answer 21

Set of 10 principles that promote human rights, sustainability, and the eradication of corruption

Question 22

Vertical System

Answer 22

Channel member has control of the entire business system, via ownership or contract, or through its purchasing ability

Question 23

Human rights

Answer 23

Inherent dignity with equal and inalienable rights and the foundation of freedom, justice, and peace in the world

Question 24

Consumerism

Answer 24

The belief that the interest of consumers, rather than those of producers, should dictate the economic structure of a society

Question 25

Made to break

Answer 25

Planned obsolescence, repeat the consumption process and consumers return to buy more
Make product with a short life.