Concept Check #3

Question 1

International Business Ethics

Answer 1

Moral principles that define right and wrong behavior in conducting business in a global environment

Question 2

The most common ethical issues in business involve

Answer 2

employment practices
human rights
environmental regulations
the moral obligation of multinational companies

Question 3

Social responsibility

Answer 3

refers to the idea that managers should consider the social consequences of economic actions when making business decisions

Question 4

Stages Model

Answer 4

stage 1: home market only
stage 2: indirect export
stage 3: direct export
stage 4: foreign production

Question 5

Non equity

Answer 5

Exports and contractual agreements
less costly
potential for gradual organizational learning
Exports- direct from company A to company C in another country
indirect- company a, to company b, then to company c

Question 6

Equity Mode

Answer 6

Joint ventures and wholly owned subsidiaries
Demonstrate strategic commitment to certain markets, local customers and suppliers
Deters potential entrants

Question 7

Non-equity

Answer 7

R&D contract: outsourcing agreements in R&D between firms
Turnkey project: foreign firm is paid to design and construct new facilities and train personnel
Build-Operate-transfer: like turnkey buy foreign firm operates for a set period
licensing/franchising: producing/marketing on the licensor/franchisor’s behalf

Question 8

Equity Mode Entry

Answer 8

Greenfield: starting on a new field
Joint Venture:
Acquisition:

Question 9

4 ps of marketing

Answer 9

price
promotion
product
place

Question 10

marketing approach

Answer 10

ethnocentric- adopt the domestic marketing mix for global markets
geocentric- standardize a global marketing mix for global market
polycentric- customize the firms marketing mix for each market.