key terms 4.4- Global industries and companies Flashcards
what is reverse engineering?
a method of analysing a product’s design by taking it apart
what is transfer pricing?
a system operated by MNCs
an attempt to avoid relatively high tax rates through the prices which one subsidiary charges another for components and finished goods
what are ethics?
moral rules/principles of behaviour that should guide members of a profession or organisation and make them deal honestly and fairly with each other and with their stakeholders
what is an institutional framewof key stakeholders and respect ork?
the system of formal laws, regulations and procedures
and informal conventions customs and norms that activity and behaviour
what is a code of conduct?
a set of rules outlining the proper practices of an organisation that contributes to the welfare of key stakeholders and respects the rights of all affected by its operations
what are stakeholders?
groups or individuals who can affect or be affected by the actions of a business
what is competition policy?
govt policy that exists to promote competition and ensure that firms don’t abuse their market power, do not attempt to fix prices or use pricing strategies to drive out competition/collude against other producers or consumers
what is a direct action?
the use of demonstrations, protests, strikes or even sabotage to achieve a political or social goal
what is naming and shaming?
publicising behaviour that is considered to be unethical as widely as possible and thereby threatening a business’ reputation
what are pressure groups?
generally voluntary organisations that operate at all levels of society and aim to change either political or commercial decision-making
what is tax avoidance?
using legal methods to reduce the amount of tax that a company pays
what is tax evasion?
using illegal means to avoid paying taxes that are owed
