Chapter 8

Question 1

What is ethic?
(The study of…or…of what is…or… It can be…by the…from the…or…behavior).

Answer 1

The study of morals or principles of what is right or wrong. It can be measured by the justification from the individual or organization’s behavior.

Question 2

What are the 3 different types of ethics?
(S.T.T.).

Answer 2

• Social ethics.
• Transcendental ethics.
• Tactical ethics.

Question 3

What is Social Ethics? (3).

Answer 3

• Society determines the standards by which right or wrong conduct is to be judged.
• Expressed and learned.
• Fundamental weakness is that it does not apply beyond the home society.

Question 4

What is Transcendental Ethics?
(Based on…of…and…that transcend all…(religion)).

Answer 4

Based on absolute concepts of right and wrong that transcend all human societies (religion).

Question 5

What is Tactical Ethics?
(Based not on…of what is…in a…or…., but what is…for…).

Answer 5

Based not on concepts of what is right in a social or absolute context, but what is advantageous for the individual.
(Normally used in the economy).

Question 6

Is economic growth ethically desirable? (3).
(Eg is desirable when…).
(Eg is desirable if the…).
(Eg is desirable when it is….).

Answer 6

YES, IF…

• Economic growth is desirable when increase GDP while lowering unemployment.
• Economic growth is desirable if the distributive effect increases the welfare of the poorest section and creates a more egalitarian society.
• Economic growth is desirable when it is sustainable.

Question 7

What does economic growth imply? (2).
(G=TL=WTOs)
(The agreement on…)

Answer 7

• Globalization = Trade Liberalization = Needs of WTOs.
• The agreement on Trade-Related aspect of Intellectual Property Rights (TRIPS).

Question 8

What are the 3 conceptual differences & what do they mean?

Answer 8

• Patents: Grants the investor exclusive rights to the manufacture, use or sale the invention.
• Copyright: The exclusive right to publish and dispose of written works.
• Trademark: Designs and names. (Logos & Slogans).

Question 9

What does the TRIPS agreement do?

Answer 9

Protect the interest of the inventor, company and home country. Thus, firms needs TRIPS to incentivize innovation.

Question 10

What does the TRIPS agreement imply? (2).

Answer 10

• Whomever invented or created something has the right to control and own their invention or creation.
• The International Property Rights (IPR) encourage and reward creative work, therefore companies have incentives to develop new technology which benefits economic development and welfare.

Question 11

What do we take from the ethics of international business? (5).
(LotL.PtB.SE.FCPA.)

Answer 11

1. Activities of business are subject to law of the land. (tactical ethic).
2. It sometimes pays to break the law.
3. Social ethics can also express itself through the climate of opinion.
4. Potential confrontation between a firm’s social ethics and countries’ social ethics (Foreign Corrupt Practices Act).

Question 12

What about incentives and ethics? (2).
(C. & HUS.).

Answer 12

Regardless…economic structure lead by incentives makes the ethics.

• In some case, it can lead to corruption.
• Often leads to highly unequal societies.