Quiz 2: Chapters 4, Chapter 8 Flashcards

1
Q

CPT4: what makes up the criteria for general business ethics
bonus: the 5 examples MEECH

A

The accepted principles of right and wrong governing the conduct of business people.

  • moral obligation of multinational corporations
    -employment practices
  • environmental regulations
  • corruption
  • human rights
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2
Q

CPT4: What is the root/cause of unethical practices in international businesses? ((6) (ppgsld)

A

PEPO: poor personal ethics

PSYCHO: psychological distances

GEO: geographical distances

STRATO: failure to incorporate strategic and operational decision making

LEAD D. CULTURO: dysfunctional leaders and culture.

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3
Q

CPT4: How does one make sure ethical issues are considered in international business decisions? (4)

A
  • hire and promote well grounded. ethical employees
  • build a workplace culture that values ethics
  • leaders act and articulate good ethics with consistency
  • be and share moral courage
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4
Q

CPT4: Most corrupt industries: (4)

A
  • extraction
  • construction
    -transportation
  • IT
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5
Q

CPT4: what circumstances influence ethics and ethical considerations (5/6) PESCT

A
  • political environment (laws,regulation, national, international)

-ECONOMIC ENVIRONEMTN (currency flucuations, international monetary organizations)

  • socio-cultural environment ( population, immigration, urbanization, etc)

-COMPETITION: The need for corporations to remain competative = consequences for both employees and consumers on a global scale.

-Technological environment (communciations, productivity, demand and access to work)

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6
Q

CPT4: Determinants of ethical behaviour (5) PODUL:

A
  • PERSONAL ETHICS
  • ORGANIZATION CULTURE
    -DECISION-MAKING PROCESS
    -UNREALISTIC PERFORMANCE GOALS
    -LEADERSHIP
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7
Q

CPT4: WHY DOES THE INTERNET HAVE SUCH A BIG INFLUENCE ON ETHICS? (4) VISQ + 1:

A
  • VARIETY
    -IMPACT
  • SPEED
    -QUANTITY

MAGNITUDE: large amount of content can be created and shared at a short period of time, and more people than ever are on the internet

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8
Q

WHAT IS CORPORATE RESPONSIBILITY? :

A

the idea that corporations should consider social consequences of their actions when making business decisions, rather than just prioritizing capital gains all the time.

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9
Q

CPT4: WHAT IS NOBLESSE OBLIGE? HOW DOES IT APPLY?

A

NOBELLESE OBLIGE: honourable and benevolent behaviour, responsibility of the high birth

  • successful corporations should give something back to society bc it is that made their success possible
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10
Q

CPT4: WHAT ARE THE CORPORATE SOCIAL RESPONSIBILITY (CSR) OBLIGATIONS (4) ADOP?

A
  • ACCOMADATIVE STANCE
    exceeding customers expectations
    -DEFENSIVE STANCE
    deny responsibility for the cause of concern
  • OBSTRUCTIONIST STANCE
    create barriers that make it difficult for customers to address their concerns
  • PROACTIVE STANCE
    responding to issues as soon as they arise and inform their customers of how they will be proceeding
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11
Q

CHAPTER 4 IMPLICATIONS FOR BUSINESS:

A
  1. COMPANIES HAVE TO DEAL WITH AN INCREASINGLY COMPETITIVE ENVIRONMENT
  2. COMPANIES MUST NOT JUST “DO THE RIGHT THING”, THEY MUST BE SEEN DOING I
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12
Q

NAFTA AND CUSMA ARE/WERE

A

agreements between mexico, usa, and canada to reduce tarrifs and trade barriers between the countries

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13
Q

WHAT ARE THE LEVELS OF FREE TRADE (FROM OUTSIDE IN) (5)

A
  1. Political union
    - independent states uniting (USA)
  2. economic union
    -adoption of a common currency (euro)
    - create more efficiencies and more wealth opportunities
  3. common market
    pursuing a comon external trade policy (pre-pre free trade)
  4. customs union
    group of countries committed to removing all barriers (pre free trade )
  5. FREE TRADE
    all barriers of trade are removed
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14
Q

Pros and Cons of the Euro

A

Pros :
- significant savings from having only one currency
- common currency makes it easy to compare prices across Europe
- european producers will be forced to reduce their production costs to maintain profits

Cons:
- national authorities have no control over monetary policy
-European central bank has responsibility to set interest rates and determine policies

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15
Q

TRADE CREATION VS TRADE DIVERSION

AND Which is better?

A

CREATION:
- high cost producers are replaced by low cost foreign producers within a free trade area

DIVERSION:
- Lower cost external suppliers are replaced by high cost external suppliers within a free trade area

-TRADE CREATION HAS TO HAVE A GREATER AFFECT THAN TRADE DIVERSION IN ORDER TO HAVE A BENEFICIAL AFFECT

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16
Q

REI DEFINITION?

A

REGIONAL ECONOMINC INTEGRATION: AGREEMENTS AMONG COUNTRIES IN A GEOGRAPHIC REGION TO REDUCE AND ULTIMATELY REMOVE TARRIF AND NONTARRIF TRADE BARRIERS FOR GOODS SERVICES AND PRODUCTION ETC

17
Q

CHAPTER 8 IMPLICATIONS FOR BUSINESS:

A

REIs can be good and threatening

Opportunities:
- free movement of goods across borders
-harmonization of product standards
- creates good loopholes
- diet coke has aspartame in Canada but not in usa

-simplified Tax regimes
- Cost economies

Threats:
-Business environment within both groups will become more competative
- nonmember specific threats
-likely long term improvements in competititve positions

Threats:

18
Q

How to know when to increase labour or kapital

A

mpk>mpl = use more kapital

mpk<mpl = use more labour