Pt 4: Ch 7 - 10 Flashcards
globalization
refers to the increasing movement of goods, services, and capital across national borders. A process of an ongoing series of interrelated events
transnational corporations
firms that control assets abroad
acceleration of globalization attributed to:
technological innovation, transportation systems, rise of major transnational corps, social and political reforms
International Financial and Trade Institutions (IFTIs)
World Bank , World Trade Organization, International Monetary Fund
free enterprise system
where assets are privately owned and exchanged in a free and open market. Bound on the principle of voluntary association and exchange
central state control
economic power is concentrated in the hands of govt officials and political authorities
constructive engagement
when TNCs operate according to strong moral principles, they can become a force for positive change in other nations where they operate
global codes of conduct
seek to define acceptable and unacceptable behavior for todays TNCs
civil society
comprises of nonprofit, educational, religious, community, family and interest-group orgs. These orgs do not have a commercial or govt purpose
NGOs
orgs that are concerned with environmental risks, labor practices, worker rights, community development and human rights
collaborative partnerships
alliances among orgs from the three sectors (business, govt, civil) can draw on the unique capabilities of ea and overcome ea particular weaknesses
negative externalities
(spillover effects) occurs when the manufacture or distribution of a product gives rise to unplanned or unintended costs (economic, physical or psychological) borne by consumers, competitors, communities or other stakeholders
public policy
a plan of action taken by govt officials to achieve some broad purpose affecting a substantial segment of a nations citizens
fiscal policy
refers to patterns of govt taxing and spending that are intended to stimulate or support the economy
monetary policy
refers to policies that affect the supply, demand, and value of a nation’s currency.
social assistance policies
the advanced industrial nations have developed elaborate systems of social services for their citizens
regulation
can take the form of laws affecting an org’s economic operations
ad hoc coalition
bring diverse groups together to organize for or against particular legislation or regulation
corporate political strategy
involves the activities taken by orgs to acquire, develop and use power to obtain an advantage
political action committees (PACs)
independently incorporated orgs that can solicit contributions and then channel the funds to candidates seeking political office
economic leverage
occurs when a business uses its economic power to threaten to leave a city, state , or country unless a desired political action is taken
advocacy advertising
ads focus not on a particular product or service, but on a company’s views on controversial political issues.
soft money
unlimited contributions to the national politcal parties by individuals or orgs for party building activities
527 organizations
groups organized under section 527 of the IRS tax code for the sole purpose of influencing elections
corporate power
refers to the capability of corporations to influence govt, the economy, and society based on their organizational resources
predatory pricing
the practice of selling below a producers cost to drive rivals out of business
Sherman Act
foundation of anti-trust laws 1890
vertical mergers
combining companies are at different stages of production in the same general line of business
horizontal mergers
occurs when combining companies are at the same stage or level of production
conglomerate merger
combining firms are totally unrelated
competition policies
foreign countries versions of anti-trust laws
harmonization
nations have tried to coordinate laws and enforcement efforts
