Pt 4: Ch 7 - 10

Question 1

globalization

Answer 1

refers to the increasing movement of goods, services, and capital across national borders. A process of an ongoing series of interrelated events

Question 2

transnational corporations

Answer 2

firms that control assets abroad

Question 3

acceleration of globalization attributed to:

Answer 3

technological innovation, transportation systems, rise of major transnational corps, social and political reforms

Question 4

International Financial and Trade Institutions (IFTIs)

Answer 4

World Bank , World Trade Organization, International Monetary Fund

Question 5

free enterprise system

Answer 5

where assets are privately owned and exchanged in a free and open market. Bound on the principle of voluntary association and exchange

Question 6

central state control

Answer 6

economic power is concentrated in the hands of govt officials and political authorities

Question 7

constructive engagement

Answer 7

when TNCs operate according to strong moral principles, they can become a force for positive change in other nations where they operate

Question 8

global codes of conduct

Answer 8

seek to define acceptable and unacceptable behavior for todays TNCs

Question 9

civil society

Answer 9

comprises of nonprofit, educational, religious, community, family and interest-group orgs. These orgs do not have a commercial or govt purpose

Question 10

NGOs

Answer 10

orgs that are concerned with environmental risks, labor practices, worker rights, community development and human rights

Question 11

collaborative partnerships

Answer 11

alliances among orgs from the three sectors (business, govt, civil) can draw on the unique capabilities of ea and overcome ea particular weaknesses

Question 12

negative externalities

Answer 12

(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

Question 13

public policy

Answer 13

a plan of action taken by govt officials to achieve some broad purpose affecting a substantial segment of a nations citizens

Question 14

fiscal policy

Answer 14

refers to patterns of govt taxing and spending that are intended to stimulate or support the economy

Question 15

monetary policy

Answer 15

refers to policies that affect the supply, demand, and value of a nation’s currency.

Question 16

social assistance policies

Answer 16

the advanced industrial nations have developed elaborate systems of social services for their citizens

Question 17

regulation

Answer 17

can take the form of laws affecting an org’s economic operations

Question 18

ad hoc coalition

Answer 18

bring diverse groups together to organize for or against particular legislation or regulation

Question 19

corporate political strategy

Answer 19

involves the activities taken by orgs to acquire, develop and use power to obtain an advantage

Question 20

political action committees (PACs)

Answer 20

independently incorporated orgs that can solicit contributions and then channel the funds to candidates seeking political office

Question 21

economic leverage

Answer 21

occurs when a business uses its economic power to threaten to leave a city, state , or country unless a desired political action is taken

Question 22

advocacy advertising

Answer 22

ads focus not on a particular product or service, but on a company’s views on controversial political issues.

Question 23

soft money

Answer 23

unlimited contributions to the national politcal parties by individuals or orgs for party building activities

Question 24

527 organizations

Answer 24

groups organized under section 527 of the IRS tax code for the sole purpose of influencing elections

Question 25

corporate power

Answer 25

refers to the capability of corporations to influence govt, the economy, and society based on their organizational resources

Question 26

predatory pricing

Answer 26

the practice of selling below a producers cost to drive rivals out of business

Question 27

Sherman Act

Answer 27

foundation of anti-trust laws 1890

Question 28

vertical mergers

Answer 28

combining companies are at different stages of production in the same general line of business

Question 29

horizontal mergers

Answer 29

occurs when combining companies are at the same stage or level of production

Question 30

conglomerate merger

Answer 30

combining firms are totally unrelated

Question 31

competition policies

Answer 31

foreign countries versions of anti-trust laws

Question 32

harmonization

Answer 32

nations have tried to coordinate laws and enforcement efforts